The Analysis of Specialization and Diversification of Equipment Manufacturing Industry in China

Based on the overview of the theory and measurement methods of specialization and diversification, this paper calculate the specialization and diversification level of equipment manufacturing industry from the perspective of sector and regional separately in china during 1993~2007. Then the paper establish panel data model to analysis the spillover effects of specialization and diversification. The results show that China's equipment manufacturing industry has a very high specialization level and strong MAR spillover effects, while the diversification level and Jacobs spillovers is relatively low, and there is a very strong regional imbalance development in equipment manufacturing industry.