Inter-Provincial Industrial Structure Differential Factors in China : Application of the DPG Approach to the Provincial Input-Output Tables of China 2012

Economically active space is restricted in many ways. These restrictions include natural geography, historical conditions, institutions, and multilayer governmental systems. The combination of these factors determines the disparities of economic activity between regions, leading to different industrial structures being developed in different regions of the same country. Thus, we need to consider what factors are important in explaining these regional differences in development and understand what the differences indicate. In this article, using the deviation from proportional growth (DPG) model as a form of input-output analysis, we compare the differences in industrial structure of each provincial area of China and consider its relevance of comparative advantageous industrial sectors of each region. The Provincial Input-Output Tables of China 2012 are used for the original database.