Using the 2004 China economic census database, this paper examines the impact of information and communication technologies (ICT) on the geographical concentration of manufacturing industries, controlling for a broad set of other determinants of industrial agglomeration. Contrary to the argument that ICT leads to more dispersion, it is found that ICT promotes geographical concentration of industries. The results are robust to different measures of ICT, at different geographical levels and to the consideration of endogeneity.
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Hong et al. (2011) studied this question.
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