1. Industrial Deglomeration
A case study of China

2. What is industrial de-agglomeration?
Deglomeration occurs when companies and services leave because of the diseconomies of industries’ excessive concentration. Firms can achieve economies because of the increase in scale of industrial activities benefited from agglomeration. However, after reaching the optimal size, local facilities may become over-taxed, lead to an offset of initial advantages and increase in PC. Then the force of agglomeration may eventually be replaced by other forces which promote deglomeration. (Diversification of an industry in the horizontal relations between processes within the plant.)

3. How does industrial de-agglomeration occur?
Short-distance intra-city dispersal
Long-distance dispersal – at regional/national level or international level

4. Intra-city dispersal From city areas to outskirts
Suburbanization of industries
Out-of-town movement of industries

5. Examples in Hong Kong

6. Long-distance dispersal
Regional/national level
From one part of a country to another
Dispersal to new regions
From more prosperous regions to less prosperous regions

7. Industrial decentralization in 1950s

8. Go West Policy, 1999

9. Long-distance dispersal
International level
From one country to another
From MDCs to LDCs/NICs
From LDCs to MDCs
Cross-border or overseas
Multi-national

10. Factors for industrial deglomeration
Industrial diseconomies
To capture a wider market
To utilize raw materials from widely dispersed sources
To benefit from the incentives offered by the government