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Mitteilungen der Österreichischen Geographischen Gesellschaft
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DATUM, UNTERSCHRIFT / DATE, SIGNATURE
BANK AUSTRIA CREDITANSTALT, WIEN (IBAN AT04 1100 0006 2280 0100, BIC BKAUATWW), DEUTSCHE BANK MÜNCHEN (IBAN DE16 7007 0024 0238 8270 00, BIC DEUTDEDBMUC)
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Mitteilungen der Österreichischen Geographischen Gesellschaft, Band 167/2025, pp. 185-215, 2026/05/21
Band 167 (Jahresband), Wien 2025
Volume 167 (Annual volume), Vienna 2025
Many rural areas in China have experienced a fast industrialisation process since 1978 when the “reform and opening-up” policy was initiated. The evolution of market institutions is a specific institutional manifestation of decentralisation and marketisation (accompanied by the globalisation) in this national economic reform. From the actor perspective considering the firm heterogeneity, how these successive institutions interact with each other and co-evolve with the industrial agglomerations has rarely been investigated in literature. Three major forms of market institutions which represent the milestones in Chinese in-dustrial development history – specialised market, trade fair and electronic market – are identified. Drawing on the evolutionary concepts and approaches of institutional economics and political economy and through a case study of the Lecong-Longjiang-Jiujiang furni-ture industrial agglomeration in Guangdong, China, this paper seeks to better explain how market institutions evolve and how do heterogeneous firms in the industrial agglomeration evolve differently with the institutional change. Findings include that the evolution of the market institution system is a path-dependent layering process, with partial replacement and conversion of older institutions. Local firms evolve from single-institution followers into seven groups with different market institution portfolios. Results suggest the limitations of a single theoretical model of evaluation, and the usefulness of a neoclassical approach in institution-agglomeration research is reemphasised.
Keywords: Market institutions, industrial agglomeration, firm heterogeneity, evolution, layering, replacement, conversion, path dependence, furniture industry, industrial development, Guangdong, China