In this paper, we find that, in China, geographical changes of industrial bases in the 1980s had led to a slight drop in the
extent of specialization and location imbalance, but in 1990s the specialization and industry imbalance have further developed.
The geographical advantage for trade has a significant impact on the location patterns, and the effects of local protectionism
are confined to the
... [Show full abstract] hinterland in 1990s. The role of comparative advantage in shaping industry location is evident, and some
predictions derived from new economic geography are partially supported.