The excessive concentration of Foreign Direct Investment (FDI) in the sporting goods manufacturing industry has been a notable issue, especially during the transition from a planned to a market economy. This paper explores regional infrastructure disparities by focusing on three key areas: transportation, communications, and energy. Using 2006 data as a baseline, it measures transportation through road and railway density (miles per square kilometer), energy consumption as kilograms of standard coal per capita, and communications via the number of mobile and fixed-line telephones per 100 people. The findings reveal significant differences between the western region and the more developed eastern and central regions.
Although the western region's geographical position cannot be altered, its relative standing can be improved through infrastructure development, such as expanding transportation networks and enhancing communication systems. These improvements can reduce the perceived distance and time, thereby mitigating location disadvantages. Infrastructure, both physical and institutional—such as education, health, urban planning, and investment environment—plays a crucial role in shaping economic growth. A lack of adequate infrastructure hinders the sustainable development of industries like sporting goods manufacturing.
Historically, China’s sporting goods industry was concentrated in economically advanced regions, with five major production bases and four commercial supply hubs located mainly in the east. During the planned economy era, this imbalance was already evident. In the market economy era, the eastern coastal areas, benefiting from earlier reform policies, geographic proximity, and human capital advantages, experienced faster growth. This created a "Matthew effect," where the already advantaged regions became even more prosperous, further widening the gap.
As a result, FDI in the sporting goods sector has become disproportionately concentrated in these developed areas. The impact of FDI is substantial, influencing the number of firms, their size, and overall industrial output. This over-concentration raises concerns about regional imbalances and the long-term sustainability of the industry's development. Addressing this issue requires targeted policies to improve infrastructure and create a more balanced investment environment across different regions.
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