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Marine Policy 50 (2014) 227–237

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Marine Policy
journal homepage: www.elsevier.com/locate/marpol

China's marine economy and regional development


Xu-Zhao Jiang a, Tie-Ying Liu a,n, Chi-Wei Su b
a
School of Economics, Ocean University of China, China
b
Department of Finance, Ocean University of China, China

art ic l e i nf o a b s t r a c t

Article history: This paper analyzes the evolution of Chinese marine economic development policy and the character-
Received 22 February 2014 istics of regional differentiation in the coastal regions. The contributions of the elements of the marine
Received in revised form economy to regional economic growth in China are deduced by using a multi-factor production function
26 June 2014
model with a constant elasticity of substitution. The results indicate that the contribution of the Chinese
Accepted 26 June 2014
marine economy to the national economy increased from 6.46% to 13.83% between 2000 and 2011, and
the average annual growth rate during that same period was 7.17%. This contribution mainly resulted
Keywords: from marine capital's contribution to the national economy, which amounted to roughly two-thirds of
Marine economy the marine economy's contribution to the national economy. With respect to regional differentiation, the
Regional development
contributions of the marine economy to the regional economies in China are ranked by region from
Marine policy
greatest to least as follows: the Circum-Bohai Sea Region, the Yangtze River Delta and the Pearl River
China
Delta region. Finally, Liaoning's marine economy made the largest contribution to the national economy
from 2000 to 2011.
& 2014 Elsevier Ltd. All rights reserved.

1. Introduction gradually become the new economic growth point of China.


Second, the statistical coverage of China's marine economy, which
Because land resources are becoming exhausted by large-scale includes its marine industry and marine-related industries, is
development and the utilization of fuel resources, people have larger than that of other countries (China Marine Statistical Year-
begun to pay considerable attention to the exploitation and book, 2013). The Chinese government attaches great importance to
potential economic value of marine resources and to promote the statistical calculations of its marine resources and related
the development of the marine economy. China has witnessed its research. Third, China's marine industry system is broad based,
centers of economic activity shift from the hinterland to its coastal and the government has developed national marine planning,
regions during the last 2000 years, with coastal economies which signifies its determination to develop the marine economy
achieving considerable levels of prosperity during the early Tang in recent years.
(7th–10th centuries) and Ming (14th–17th centuries) dynasties. However, the qualitative differences between the coastal
After the third century B.C., the opening of the maritime silk route regions' marine economies are fairly obvious. According to the
and substantial maritime trade with Northeast and Southeast China Marine Statistical Yearbook, in 2012, the Chinese Gross
Asian countries has generated steady development in China's Ocean Product (GOP) totaled 5.0087 trillion yuan, which was an
coastal regions over the centuries. Since the 1980s, China's marine increase of 7.9% over the previous year, and this GOP accounted for
economy has expanded, and the coastal regions' marine resources 9.6% of the gross domestic product (GDP). According to the
have been developed vigorously. In the 21st century, many “twelfth national five-year marine economy development plan”,
countries have increased their strategic investments in emerging China's marine economic output is expected to account for 10% of
marine industries. Compared with other countries, China's marine its gross domestic product by 2015. According to this plan, China
economy has its own unique characteristics and strong signifi- will advance the establishment of three key marine economic
cance, which can be explained as follows. areas: the Circum-Bohai Sea Region, the Yangtze River Delta and
First, China has vast ocean territory, and the coastal regions are the Pearl River Delta region. Moreover, China will nurture an array
rich in marine resources. Developing the marine economy has of marine economic growth poles. Although China's marine
economy develops more quickly from year to year, the regional
states are obviously different. The Circum-Bohai Sea Region's GOP
n
Correspondence to: School of Economics, Ocean University of China, 238,
is 1.5 times the GOP of the Pearl River Delta region. In addition,
Songling Rd., Qingdao, Shandong, China. Tel.: +86 13869827948. Tianjin's marine economy has accounted for more than 30% of the
E-mail address: liutieying1985@126.com (T.-Y. Liu). total for the region, which is significantly higher than in Hebei,

http://dx.doi.org/10.1016/j.marpol.2014.06.008
0308-597X/& 2014 Elsevier Ltd. All rights reserved.
228 X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237

Jiangsu, Guangxi and other coastal provinces (in which the development of its marine economy. Marine industry is highly
comparable figures are less than 10%). Because of the differences important in terms of natural resources and energy, trade, sciences
in natural resources, policy, and foreign direct investment, the and techniques. It is an essential part of trade, which means that
regional differences among marine economies are increasingly there must be innovative solutions and careful management
significant. Although modest regional economic differences help systems to ensure the industry's long-term sustainability. For
promote the rapid development of the economy, these regional instance, 85% of China's international trade moves by sea lanes,
differences would result in relatively weak demand in under- and China's increasing reliance on oil imports to sustain its rapid
developed regions, which would lead to weakness in effective economic expansion is a key element of this marine commerce.
demand and lower utilization and efficiency of capital or labor. China imported over half of the oil it consumed in 2009, and the
Thus, it is necessary to study the development of the Chinese majority of this oil was transported by tankers [51]. In recent
marine economy's evolutionary characteristics and the particula- years, the pace of industrialization and urbanization of the Chinese
rities of different regions. By analyzing the objective patterns in coastal areas has greatly accelerated, and space for marine devel-
the Chinese marine economy's development, a more comprehen- opment is thus urgently required. Since adopting the policy of
sive regional characteristic may be obtained. “reform and opening” in 1978, China has witnessed the rapid
It is important to understand why the marine economy's development of its marine resources, particularly in the most
development presents regional differences and why different recent decade. China's marine economy has maintained a higher
ocean-based industries exhibit different space accumulation char- growth rate than the national economy during the same period,
acteristics. From the perspective of cost comparison, the repre- but it still has certain disparities with respect to the global marine
sentatives of the traditional classical economics of Smith [26] and economy [50].
Ricardo [25] explain the location selection problem of industrial At the beginning of the present century, many researchers
layout by means of comparative and absolute advantages in local began to understand the importance of measuring the contribu-
production costs. Under classical location theory, Thunen [40] tion of the marine economy to the national economy [10,27,11].
argues that an agricultural location's layout should consider not Many scholars have primarily argued for specific marine or
only the natural conditions but also factors such as transportation marine-industry contributions to the regional economy – includ-
and agricultural management. Later, Weber [41] posits that indus- ing seaside tourism, transportation and fisheries – but not for the
trial layout is mainly influenced by freight and other production marine industry as a whole [6,13,39]. Most of the previous and
factors (labor and externalities). He emphasizes that freight, labor related studies focus on countries' overall marine economic con-
cost and gathered force have effects on the selection of production tributions and neglect the regional differences in a country; there
distribution. Since the 1930s, the market has become an important are only few studies on contributions of the marine element
factor to industrial layouts. Christaller [1] proposed different [17,51]. Thus, this paper analyzes the evolution regularity of
spatial distribution models according to market, traffic and admin- marine economic development policy since the founding of the
istrative principles on the basis of traditional classical location People's Republic of China as its first contribution.
theory. Josch [9] emphasizes industry layout based on the pursuit Since 1949, China has experienced four historical stages in its
of profit maximization, which focuses on consumer demand and marine economy: recovery in the initial period (1949–1965); the
the market. Furthermore, Perroux [22] describes the localities of forward period (1966–1977), which involved many changes; the
various region-leading industries because the growth pole will be overall development period (1978–1990); and the comprehensive
important for the surrounding industry's development. starting period (1991-). Because the development of China's
These theories analyze industry layout from the trade and marine economy has affected everything from the traditional
location theory perspectives, but their hypotheses are too strict. In marine industries to the overall development of strategic emer-
the 1990s, Krugman [12], as the representative of spatial econom- ging industries, the advantages derived from developing the
ics, introduced space factors to analyze the neoclassical framework marine economy must be studied, which gradually changed from
in scale-increasing returns and imperfect competition, which an extensive mode to an intensive mode. As its second contribu-
more adequately explains problems such as the spatial distribution tion, the present research focuses on the regional contribution of
of industry and urbanization. He explains that the initial equili- the marine economy's elements for the coastal provinces of China.
brium with the reduction of trade costs and labor transfers The remainder of this study is organized as follows: Section 2
appears as a regional asymmetric structure in the center periphery presents the historical evolution of Chinese marine economic
model, which demonstrates the spatial agglomeration trend of policy, Section 3 describes China's coastal economies' character-
manufacturing. Subsequently, a number of scholars have studied istics, and Section 4 discusses the differences in the development
industry spatial agglomeration and location choice by considering of Chinese regional marine economies. Section 5 concludes
transportation costs, increasing returns and spatial agglomeration the paper.
problems [2,4]. However, Krugman's research is based on enter-
prise homogeneity assumptions and does not consider differences
among enterprises and individuals. More recently, Melitz and 2. Evolution of marine economic policy in China
Ottaviano [14] consider micro-enterprises' cost and individual
labor productivity differences to determine both the competitive- The present Chinese marine economy dates from 1978; Xu [43]
ness of enterprises and their spatial distribution. The regional presented the critical ideas related to its development. Since then,
differences among local marine economies are mainly the result of He and Chen [5], Yang [47], Quan [24] and Xu [45] have used
regional characteristics regarding natural resource endowment, different approaches to define the concept of the marine economy.
transportation costs, human capital and the degree of openness to In 2006, China's government proposed the “classification of
the outside. marine and related industry (GB/T 20794-2006),” which refers to
In China, the marine economy is now considered to be a critical the development and utilization of the marine economy and
component of national economic development. Following the protects all types of marine industry activities. The measure
country's economic trade policy (particularly in the period 2001– clarifies the marine economic statistical indexes and standards
2010), China's marine economy has been growing rapidly in line and further standardizes marine economic statistical practices. As
with the national GDP. Additionally, as the second largest economy part of China's economic and political development, the contem-
in the world, China is paying more attention to the sustainable porary marine economy in China has experienced four historical
X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237 229

stages since the founding of the country [8]. There have been a industry. Third (and finally), the adjustment shows the planned
number of advantages derived from the marine economy's devel- economy's characteristics because businesses had to rely more on
opment quality, which gradually changed from an extensive mode their own conditions, cope with a variety of blockades and
to an intensive mode. maintain independent development. Because there were differ-
ences in the basic conditions of the marine economy, the future
2.1. Marine industries' economic recovery in the initial period development trend was also affected by the conditions of this
(1949–1965) period.

Chinese marine economic policies were steady in the recovery 2.2. The marine economy's development period (1966–1977)
and establishment period when the marine economy's ultimate
form was not yet fully developed. The traditional industries, From 1966 to 1976, China experienced the Cultural Revolution,
including fisheries, marine transport and the salt industry, quickly and the marine economy's development, which was not relevant
recovered from 1949 to 1965. However, the imperialist countries' to policy, basically ground to a halt. The State Oceanic Adminis-
blockade of the coastal regions in China made it difficult to tration was founded in 1964 as a specialized marine management
develop the marine economy, to search for offshore oil and to institution, but due to social problems, marine-economy policy
engage in deep-sea ocean exploration. There were a series of was inadequate. Marine-economy policies during this period were
instability-inducing factors in the liberated areas, in which there mainly concerned with environmental protection. For example, in
was a lower standard of living, which hurt some marine industries, 1972, Liaoning, Hebei, Shandong, Tianjin and other provinces
such as coastal tourism and other spiritual and cultural products; (cities) jointly investigated the Bohai Sea and North Yellow Sea
this aspect of marine industrial policy has not been clearly for environment. In 1973, Guangdong province conducted a water
explained. pollution survey on the Pearl River [48].
In 1956, China established its socialist system and adopted the Compared with the recovery and the initial period, marine
management system of a planned economy. The marine economic policy remained an extension of the previous policy but had lost
policies' implementation in various industries was mainly in the its continuity. The attention paid to marine environmental protec-
form of a state-owned and collective economy. Due to their tion policy largely reflected the real economic recession and the
importance to the country's long-term economic development, stagnation of the marine industry. Thus, the evolution of marine
marine industries (such as marine mining and marine power) economic policy is related to the country's current level of
were highly regulated. During this period, the marine economy economic development and characteristics.
had a planned-economy form, but some traditional industries such
as fisheries had already begun to explore the idea of fishery 2.3. The marine economy's overall development period (1978–1990)
production cooperatives. Thus, marine fisheries policy was not
controlled entirely by the central government, which gradually After the reform and opening up, China's marine economy
delegated powers to lower levels. In 1949, the government provided policy system was tentatively established. The Third Plenary
guidelines for the salt industry to develop both state-owned and Session of the 11th Central Committee of the Chinese Communist
private enterprises and to increase production and to reduce costs. Party identified economic development as the central policy, and
There are a variety of systems of ownership in the sea salt industry the government adopted an unbalanced development strategy.
[3]. State-owned transportation enterprises are the backbone and The Eastern Coastal region received priority development based
provide leadership, but they also encourage private enterprises to on location and the advantages of the zone in question, and
develop in the direction of state-funded shipping [7]. development of the marine economy was complementary to the
In 1956, the Chinese government put forward the slogan of entire country's economic development. The traditional marine
“march to science”, which was the most important policy during fisheries had strictly controlled market access. For example, in
this period. The government scientific planning committee drafted 1979, the State Fishery Administration ruled that people must
its “marine science development vision 1956–1967”, and its main obtain a license to engage in fishery production [29]. Thus, the
task was to conduct a comprehensive investigation of China's freedom of the fishing system in China was absorbed into a
offshore resources [38]. This policy was a national marine planning controlled system that was mainly influenced by the indigenous
policy that focused on the task of conducting a comprehensive fishery resources, which declined. By contrast, marine transporta-
survey, which laid a solid foundation for marine industries, tion freedom was increased, which may have benefitted growing
particularly for strategic and/or emerging industries. To this day, numbers of people through logistics and information transmission
the marine chemical industry and marine mining industry's to promote the prosperity of regional economic development. For
development have benefitted from the policy. In addition, the the most mature marine industry, the Chinese fishery law was
marine resources' protection problems appeared in traditional promulgated in 1986, and it began the process of legalizing fishery
industry during this period. In June 1955, the state council resource management, which specifies the use and management
prohibited fishing in certain areas of the Bohai Sea, the Yellow of the fishing license system and fishing gear [19]. Due to the
Sea and the East Sea of China to ensure sustainable development policy of opening to the world, some marine industries were
of fishery resources [28]. deregulated during this period [44]. In 1988, the government
Throughout the adjustments and trends of the policy during completely canceled the cargo reservation system and allowed
this period, several characteristics could be observed. First, the foreign shipping companies into China to engage in international
marine economy was adjusted to give it a socialist track. The liner shipping business in 1990. Other marine industries' policy
marine economy became an important part of the socialist developments encouraged foreign exchanges and cooperation in
economy. For example, the oceanic fishery industry gradually hopes of obtaining advanced Western technology and experience.
formed production cooperatives through the socialist transforma- Thus, there are three important characteristics of this period:
tion of agriculture by the government, and it was thus melded into first, marine policies had the features of openness. Chinese
the state's planned economy. Secondly, the marine economy was marine-economy policies were increasingly geared toward inter-
gradually adjusted in the initial period from 1949 to 1965. Most national exchanges and cooperation along with the advanced
marine industries were strictly controlled during this period, process of reform and opening. The liquidity and openness of
except for traditional industries such as fisheries and the salt the ocean itself determined the marine economy's development
230 X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237

needs, and its development incorporated advanced technology strong macroeconomic regulation and control; at the same time,
and benefited from the rapid growth in developed countries. The the investigation and statistical analysis of the marine industry has
results were helpful in offshore oil exploitation, marine engineer- been greatly improved, which makes some policies more prag-
ing construction and related areas. Second, the marine policy matic. In recent years, the State Oceanic Administration has
adjustment gave more attention to the role of market mechanisms promulgated national marine-economy statistics data and the
and fully aroused worker enthusiasm. The previous policy under national marine environment quality bulletin. In July 1995, the
the planning system was mainly in the state's overall control, and state issued the “National Marine Development Plan”, whose
the economic form gave priority to state-owned enterprises and purpose was to arrange the sea area and the development and
collective economic policy. During this period, in addition to the utilization of all types of resources. These resources were used in a
relationship between the national economy and important indus- coordinated way to solve problems in China's marine development
tries and key areas, many marine industries were adapted to [32]. In March 1996, the State Oceanic Administration issued its
operate independently and self-finance. Finally, marine economic action plan for China's 21st century ocean agenda, which sets forth
policy is trended towards becoming comprehensive in the future. the guidelines and framework for marine resources' development
Nevertheless, the evolution of marine economic policy was and environment protection [34]. In 2003, the state issued an
focused on individual industries and lacked a comprehensive outline of the national marine economy development plan, which
policy system. was China's first guidance for development of the national marine
economy and established China's marine economic vision through
2.4. The marine economy's comprehensive starting period (1991- ) 2010 [35]. On February 7, 2008, the state issued the national
marine development planning outline, which was the first overall
China's marine economy management policy and marine plan for marine areas since the founding of the PRC [36]. In 2009,
industry policy have acquired many distinct features since 1991. President Hu inspected the proposed national strategy that built
Indeed, the policy system has been better, and many policies have the blue economic zone in Shandong peninsula. This strategy not
been comprehensive and complementary during this period. The only set forth the overall development of the regional marine
policies emphasize the protection of the marine ecological economies' planning ideas but also embodied the basic concept of
resources and the harmony of development between humanity national action. Since that time, a series of regional marine
and nature. The national policy also embodies the concept of economic plans have been issued, such as the west channel bank
overall planning on land or in the sea through the use of integrated economic zone development plan and the Guangdong compre-
coastal zone management. As part of marine environmental policy, hensive marine economic development and experimental zone
the marine environmental protection law has been reformed such plan. In 2013, the state council approved the “the Marine Career
that firms or individuals who directly discharge pollutants into the Development Plan for the Twelfth Five-Year Plan”, which is a
sea must pay a pollutant discharge fee in accordance with state comprehensive plan that promotes sustainable and efficient
regulations [20]. Next, the government has promulgated a series of development of the marine economy [37].
regulations that include shipping–pollution–prevention manage- Thus, the government's policies pay attention to coordinating
ment regulations, environmental protection and the management between protection of the ocean's ecological resources and devel-
of offshore oil exploration [42]. Marine fisheries have received opment of the marine economy. Although the marine industries'
more attention with respect to ecological protection. Since 1995, output value has increased, this growth has caused a series of
the Fuji moratorium has been in effect in the East and Yellow Seas, ecological problems. The rapid development of the marine econ-
which resulted in zero growth in oceanic fishing production in omy will promote the development of the national economy and
1999 [23]. The Fuji moratorium is the measure approved by the the marine economy has gradually become a national economic
state oceanic administration and conducted by the departments of strategy. Moreover, the marine industry is based on supply chain
fishery administration for the protection of fishery resources [16]. coordination, and its strategic emerging industries have gradually
It provides that some fishing activities shall not be conducted in expanded. China's marine economy exhibits regional characteris-
specific waters during the time of Fuji (from the middle of July to tics and has gradually begun to cultivate its new oceanic economic
the middle of August). In 2007, the property law declared the growth point in the relevant areas. In addition, the marine-
rights of fishery farming and fishing rights as a usufructuary right,1 centered environmental and territorial disputes gradually high-
which is of great significance for protecting the legitimate rights light the potential future pitfalls; therefore, the national marine
and interests of marine fisheries [21]. policy should be more concerned about marine rights and inter-
During this period, certain related supporting policies aimed at ests involving other countries.
establishing a comprehensive experimental area or booster indus-
try that would play an important role in marine strategic emerging
industries, such as the seawater desalination industry. In 2005, the
government issued special regulations on water use in which 3. The Chinese coastal regions
Tianjin, Dalian, and Qingdao were identified as national desalina-
tion and comprehensive utilization cities and industrialization The coastal areas of China consist of 11 provinces, and from
demonstration bases [18]. Regarding the marine chemical indus- north to south they are as follows: Liaoning, Hebei, Tianjin,
try, the Ministry of Environmental Protection issued a soda-ash- Shandong, Jiangsu, Shanghai, Zhejiang, Fujian, Guangdong,
industry clean production standard in 2008 that promotes the Guangxi and Hainan (Fig. 1). After the reform and opening-up,
healthy development of the marine chemical industry [46]. China's coastal area was divided into three regions, including the
China's marine-economy policy has gradually involved strate- Circum-Bohai Sea Region (Liaoning, Hebei, Tianjin, and Shandong),
gic national planning. The government has introduced a series of the Yangtze River Delta (Jiangsu, Shanghai, and Zhejiang) and the
policies because development of the marine economy requires Pearl River Delta region (Fujian, Guangdong, Guangxi, and Hai-
nan). Bohai is the only inland sea, and it occupies an important
1
strategic position in China. Bohai's coastline is 3784 km long, and
The usufructuary right means the usufructuary right holder has the right to
possess, use and benefit to others all the realty or chattel in law. According to the
the corresponding sea area is 7.7 square kilometers; it has an
Real Right Law, the mineral exploration or mining right, water use right, tidal flats average depth of 18 m and contains 416 islands. The area's marine
for breeding and fishing rights are protected by law. environment condition is good, and it is rich in such natural
X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237 231

resources as oil and gas. The Circum-Bohai Sea Region consists of a Defining the marine industries in the Chinese marine economy
total area of 521,120 square kilometers and accounts for 5.43% is important in estimating the contribution of the marine econ-
of the national land area and 17.48% of the total population. omy. To standardize marine economy data, China's State Oceanic
The Yangtze River Delta, which is the most densely populated Administration released a document in 2006 that defined the
and economically developed area in China, accounts for 2.2% of the statistical standard for Industrial Classification for Marine Indus-
country's land area and 10.4% of its population. The Yangtze River tries and Their Related Activities (GB/T 20794-2006).This docu-
Delta region is based on the manufacturing aggregation along the ment sought to establish a statistical standard for collecting
river, and this region, with Shanghai as its core city, has become marine economy data from across all regions in China. The marine
the most potent economic region in terms of production services industrial classifications within this document divided the marine
and manufacturing. The Pearl River Delta region is between the sector into two parts; ocean industries and marine related indus-
traditional Pearl River delta and the pan-Pearl River delta area and tries. According to the statistical standard for Industrial Classifica-
is located in the coastal provinces in southern China, which are tion for Marine Industries and Their Related Activities, and as
close to Hong Kong, Macao and Taiwan. This area is more open defined by China's State Oceanic Administration's Industrial Clas-
than most. In 2011, the Yangtze River Delta region had the highest sification for Marine Industries and Their Related Activities, the
per capita GDP, which was 1.5 times the GDP of the Pearl River marine economy is therefore the summation of both ocean and
Delta region. Whereas the Circum-Bohai Sea Region has the ocean-related industrial activities that are aimed at developing,
highest unemployment rate, the lowest unemployment rate is in utilizing and protecting the ocean. Marine industries refer to
the Pearl River delta. Among the provinces, Tianjin has the highest industries involved in the production or supply of services for
per capita GDP and Guangxi has the lowest per capita GDP. In developing, utilizing and/or protecting the ocean. This part of the
addition to Guangdong and Hainan, all the provinces' unemploy- marine economy includes 12 major marine industries such as
ment rates are at least 3%. Table 1 offshore oil and gas, marine mining, marine salt manufacturing,
the marine chemical industry, marine biomedicine, marine electric
power generation, sea-water utilization, marine ship building,
marine engineering and construction, marine communications
and transportation, coastal tourism, marine scientific research,
and education.
The marine-related industries refer to the enterprises that form
a technical and economic link with the major marine industries.
These industries are defined as suppliers and customers of the
Liaoning marine industries, and they produce inputs for use outputs from
Tianjin the latter in their production processes. Some of these activities
Hebei
are not necessarily performed at sea or even in the coastal zones.
Shandong
These industries include agriculture and mangrove forestry (that
Jiangsu
for example provide feed for marine use and that in turn use sea
Shanghai
water to irrigate certain species of plants cultivated in Chinese
Zhejiang
wetlands), marine equipment manufacturing, ocean-related build-
Fujian ing and installation, marine wholesale and retail services, etc. The
Gross Ocean Product is the short form of gross output value of the
6%-8% Guangxi Guangdong marine economy – which refers to the final results of marine
8%-9%
9%-10%
economic activities in the permanent units of the coastal region
10%+
Hainan within a given period and calculated at the market price – and is
equal to the sum total of the added values of the marine industries
Fig. 1. Regional marine economies' contributions. and marine related industries.

Table 1
China's coastal economic development characteristics in 2011.

Regions Population GDP per capita Unemployment GDP Laborers Total unemployment
(ten thousand (ten thousand RMB/ rate (%) (ten thousand (ten thousand (ten thousand
persons) person) RMB) persons) persons)

Liaoning 4383 5.07 3.7 22,226.7 579.6 39.4


Hebei 7241 3.39 3.8 24,515.76 555.4 36
Tianjin 1355 8.34 3.6 11,307.28 268.2 20.1
Shandong 9637 4.71 3.4 45,361.85 1050.4 45
Jiangsu 7899 6.22 3.2 49,110.27 811.3 41.4
Shanghai 2347 8.18 3.5 19,195.69 497.3 27
Zhejiang 5463 5.92 3.1 32,318.85 995.7 31.7
Fujian 3720 4.72 3.7 17,560.18 596.3 14.6
Guangdong 10,505 5.07 2.5 53,210.28 1238.2 38.8
Goangxi 4645 2.52 3.5 11,720.87 341.6 18.8
Hainan 877 2.88 1.7 2522.66 85.1 2.9
Circum-Bohai Sea Region 22,616 4.57 3.6 103,411.59 2453.6 140.5
Yangtze River Delta 15,709 6.41 3.3 100,624.81 2304.3 100.1
Region
Pearl River Delta region 19,747 4.31 2.9 85,013.99 2261.2 75.1
Total 58,072 4.98 3.2 28,9050.4 7019.1 315.7

Note: data are from the China Regional Economic Statistical Yearbook 2012.
232 X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237

Table 2 reflects the development of China's regional marine proportional added value growth rate was slowing; furthermore,
economy in 2000–2011. In this paper, the regional marine econ- the importance of the marine economy has a downward trend in
omy can be defined as the marine economy in regions, including this region, which is related to the structure of the local sea-based
specified coastal provinces or zones. In China, it includes eleven industry. Liaoning, Shandong, Shanghai, Fujian, Guangdong,
provinces and three coastal economic zones by administration Guangxi and Hainan's marine proportional added value growth
partition. The regional marine economy output value can be found rates were also negative from 2000 to 2011, which demonstrates
in the China Marine Statistical Yearbook. The Circum-Bohai Sea that the marine economic development speeds have fallen during
Region's marine economic growth rate was 29.09%, which was the this period. By contrast, Hebei, Tianjin and Zhejiang's proportional
fastest in all the coastal regions. The growth rate for its marine added value growth rates were positive. The marine economy's
economy in the Pearl River delta area is below the national proportion of the coastal province has increased annually, which
average. There are large differences in the coastal provinces: highlights the importance of marine economic development in
Jiangsu's marine economic growth rate was the highest from these provinces. Tianjin has the highest marine proportional
2000–2011 at 40.1%, whereas Jiangsu's marine economic growth added value growth rate at 8.74%, whereas Guangxi has the lowest
rate is currently 18.71%, which is less than half the growth rate of marine proportional added value growth rate at minus 6.59%.
Jiangsu province. The added value proportion growth rates of the Thus, the marine economy's contribution rates in different pro-
marine economies in the Circum-Bohai Sea Region and Yangtze vinces are distinct from one another.
River Delta region were 1.56% and 1.33%, respectively, and the For marine laborers, the average growth rate of regional marine
Pearl River delta area's marine proportional added value growth labor was 23.11% during the 2000–2011 period. The Circum-Bohai
rate was minus 2.44%. Thus, the Pearl River delta area's marine Sea Region's marine labor growth rate was 26.52%, which was the

Table 2
China's regional marine economy during the 2000–2011 period.

Region 2000 2011

Added valuea The ratio of Marine labor added value The ratio of Marine labor
(ten thousand RMB) added value (%) (ten thousand persons) (ten thousand RMB) added value (%) (ten thousand persons)

Liaoning 326.58 7.90 12.62 3345.5 7.35 318.2


Hebei 69.19 1.67 12.31 1451.4 3.19 94.2
Tianjin 138.63 3.35 8.52 3519.3 7.74 172.7
Shandong 737.76 17.85 71.66 8029.0 17.65 519.4
Jiangsu 146.04 3.53 51.73 4253.1 9.35 189.8
Shanghai 601.37 14.55 23.32 5618.5 12.35 207.0
Zhejiang 399.53 9.67 47.90 4536.8 9.97 416.3
Fujian 419.15 10.14 67.59 4284.0 9.42 421.6
Guangdong 1114.57 26.96 98.96 9191.1 20.20 820.4
Guangxi 110.45 2.67 16.65 613.8 1.35 111.9
Hainan 70.23 1.70 14.20 653.5 1.44 130.9
Circum-Bohai Sea Region 1272.16 30.78 105.11 16,345.2 35.93 1104.5
Yangtze River Delta Region 1146.94 27.75 122.95 14,408.4 31.67 813.1
Pearl River Delta region 1714.4 41.48 197.4 14,742.4 32.40 1484.8
Total 4133.5 100 425.46 45,496 100 3402.4

Note: data are from the China Marine Statistical Yearbook.


a
Added value refers to the final results of production and service activities by resident units according to the market prices over a certain period of time.

Table 3
China's regional marine industries' development in 2011.

Region Marine industry

Major marine Marine scientific research, Marine-related industry


industry (ten thousand RMB) education, management and (ten thousand RMB)
service (ten thousand RMB)

Liaoning 1642.8 407.2 1295.6


Hebei 684.5 77.7 689.2
Tianjin 1878.6 171.5 1469.2
Shandong 3393.7 1222.5 3412.8
Jiangsu 1787.0 591.4 1874.8
Shanghai 2104.9 1167.3 2346.3
Zhejiang 1822.7 737.3 1976.8
Fujian 1638.0 629.2 2016.8
Guangdong 3273.8 2338.4 3578.9
Guangxi 318.3 68.4 227.1
Hainan 320.9 145.9 186.7
Circum-Bohai Sea Region 7599.6 1878.9 6866.8
Yangtze River Delta Region 5714.6 2496 6197.9
Pearl River Delta region 5551 3181.9 6009.5
Total 18,865.2 7556.8 19,074.2

Note: data are from the China Marine Statistical Yearbook 2012.
X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237 233

highest among China's coastal regions. Among the provinces, to least are the Circum-Bohai Sea Region, the Yangtze River Delta
Liaoning's marine labor growth rate was the highest and Jiangsu's region and the Pearl River Delta region, and the marine economy's
marine labor growth rate was the lowest. For a sense of scale, in elements' contribution differences are closely related to the
2011, the Pearl River Delta region's marine labor force was the regional marine resource endowment and industrial structure.
largest and consisted of 14.848 million people, including 8.204
million in Guangdong province, which is the densest province for 4.1. Model
marine labor. The number of Hebei marine laborers was the
lowest, and Guangdong's corresponding number was 8.7 times The capital and labor input of the entire national economy
the number for Hebei. (including land and ocean economy) is assumed to have been in
Table 3 reflects the size of the marine industry in coastal areas accordance with the constant elasticity of substitution (CES)
in 2011. Major marine industries include fisheries, the oil–gas production function. The multi-element CES production function
industry, mining, shipbuilding, the salt industry, the general model can be constructed as follows:
marine industry, biological and pharmaceutical firms, engineering
Y ¼ Aðδ1 K 1 ρ þ δ2 L1 ρ þ δ3 K 2 ρ þ δ4 L1 ρ Þ  1=ρ ð1Þ
and construction, power, the seawater desalination industry,
marine transportation and coastal tourism. Marine scientific where Y represents regional gross domestic product (RGDP); A
research and education management services include oceanic represents the technological progress; K 1 and L1 represent the
scientific research, marine education, and related information marine labor and capital; K 2 and L2 represent the land labor and
services. The marine-related industries include marine agro- land capital, respectively, in addition to the marine economy
forestry, equipment manufacturing, and services. The Circum- system; and δ1 , δ2 , δ3 and δ4 represent distribution coefficients
Bohai Sea Region's major marine industries scale is the largest, where δ1 þ δ2 þδ3 þ δ4 ¼ 1. Then, natural logarithms and deriva-
and Shandong is the largest province within it. In the Pearl River tives to time t are taken on both sides for Eq. (1).
Delta region, marine scientific research, education management : :
and services make up the largest such sector, and Guandong is the Y A 1 ðδ1 K 1 ρ þ δ2 L1 ρ þ δ3 K 2 ρ þ δ4 L2 ρ Þ
¼ þð Þ  ð2Þ
largest province of this region. Similarly, the Circum-Bohai Sea Y A ρ δ1 K 1 ρ þ δ2 L1 ρ þ δ3 K 2 ρ þ δ4 L2 ρ
Region's marine-related industries scale is the largest, and Guang-
: : : :
Among the Eq. (2), Y ¼ dY dt
and A ¼ dA
dt
, while YY ¼ g Y and AA ¼ g A
dong's marine-related industries scale has topped 357.89 billion represent the output growth rate and the growth rate of technical
dollars. progress. Thus, Eq. (2) can be settled as follows:
 
1 ðdδ1 K 1 ρ =dtÞ
gY ¼ gA þ  ð
ρ δ1 K 1 þ δ2 L1 ρ þ δ3 K 2 ρ þ δ4 L2 ρ

4. The Chinese regional marine economy ðdδ2 L1 ρ =dtÞ ðdδ3 K 2 ρ =dtÞ
þ ρ ρ ρ ρ þ
δ1 K 1 þ δ2 L1 þ δ3 K 2 þ δ4 L2 δ1 K 1 þ δ2 L1 ρ þ δ3 K 2 ρ þ δ4 L2 ρ

A multi-element constant elasticity of substitution (CES) pro- ρ


ðdδ4 L2 =dtÞ
þ ð3Þ
duction function model that measures the marine economy and its δ1 K 1 ρ þ δ2 L1 ρ þ δ3 K 2 ρ þ δ4 L2 ρ
elements' contributions to the national economic development in
the coastal regions during 2000–2011 has been constructed in this Supposing that the changing rate of capital and labor growth
paper. The capital (or labor) is divided into two parts, including rates are constant, the equation is further reduced as follows:
 
marine capital and land capital (marine labor and land labor). g 1
1¼ Aþ 
Marine labor refers to the marine related employed personnel who gY ρ
perform the activities of marine industries and related industries δ1 ðg k1 =g Y Þ
in the marine economy. Marine capital refers to the capital ð
1 þ ðδ2 L1 =δ1 K 1 Þ  ρ þ ðδ3 K 2 =δ1 K 1 Þ  ρ þ ðδ4 L2 =δ1 K 1 Þ  ρ
investment to create marine economy output (Gross Ocean Pro-
δ2 ðg L1 =g Y Þ
duct). Marine capital can be defined as the marine and related þ
ðδ1 K 1 =δ2 L1 Þ  ρ þ 1 þðδ3 K 2 =δ2 L1 Þ  ρ þ ðδ4 L2 =δ2 L1 Þ  ρ
matter and energy stock that can provide products and services for
δ3 ðg k2 =g Y Þ
people and be able to produce earnings. The key feature of marine þ
capital lies in profitability and the characteristic of production ðδ1 K 1 =δ3 K 2 Þ  ρ þ ðδ2 L1 =δ3 K 2 Þ  ρ þ 1 þ ðδ4 L2 =δ3 K 2 Þ  ρ
inputs. Marine capital is an input factor of production, which is the δ4 ðg L2 =g Y Þ
þ ð4Þ
important link in the marine economy production process.2 Data ðδ1 K 1 =δ4 L2 Þ  ρ þ ðδ2 L1 =δ4 L2 Þ  ρ þðδ3 L2 =δ4 L2 Þ  ρ þ 1
are from the China Marine Statistical Yearbook and the China
Among these, the elasticity of marine capital (eK 1 ) is calculated by
Statistical Yearbook. The results show that between 2000 and
2011, the contribution of China's marine economy to the national δ1
eK 1 ¼ : ð5Þ
economy rose from 6.46% to 13.83%, and the average annual 1 þ ðδ2 L1 =δ1 K 1 Þ  ρ þ ðδ3 K 2 =δ1 K 1 Þ  ρ þ ðδ4 L2 =δ1 K 1 Þ  ρ
growth rate of the marine economy in China was 7.17%. The In the same way, the elasticity of marine labor (eL1 ), the
marine economy's contribution to the national economy in China elasticity of land capital (eK 2 ) and the elasticity of land labor (eL2 )
mainly came from its capital contribution. Indeed, this economic are as follows:
contribution is based on the ocean and has gradually become a
δ2
new national economic growth point. From the perspective of eL1 ¼ ð6Þ
ðδ1 K 1 =δ2 L1 Þ  ρ þ 1 þðδ3 K 2 =δ2 L1 Þ  ρ þ ðδ4 L2 =δ2 L1 Þ  ρ
regional differentiation, the regions whose marine economies
made contributions to the national economy ranked from greatest δ3
eK 2 ¼ ð7Þ
ðδ1 K 1 =δ3 K 2 Þ  ρ þ ðδ2 L1 =δ3 K 2 Þ  ρ þ 1 þ ðδ4 L2 =δ3 K 2 Þ  ρ
2
Most marine industries use marine capital. For example, fishery resources
δ4
and machinery, such as boats, are part of marine resources capitalization input, eL2 ¼ ð8Þ
which creates product value in the marine economy and can be understood as ðδ1 K 1 =δ4 L2 Þ  ρ þ ðδ2 L1 =δ4 L2 Þ  ρ þðδ3 K 2 =δ4 L2 Þ  ρ þ 1
marine capital; ocean oil and gas and drilling platforms are part of the marine oil
and gas industry's marine capital; the equipment and raw materials that are used
In theory, the output growth is determined by the factors of
in production processes to create value are part of the marine equipment and production, including capital and labor inputs and technological
manufacturing industry's marine capital, etc. progress. The contribution to the region's economic output of
234 X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237

Table 4
The contributions of marine capital (%).

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Growth rate

Tianjin 5.62 6.36 6.71 7.07 7.80 8.12 7.30 7.80 8.13 7.51 7.80 10.80 6.12
Hebei 5.27 5.96 6.16 6.53 7.14 7.62 7.54 8.17 8.63 7.37 7.61 11.43 7.29
Liaoning 4.95 5.24 5.50 5.80 6.44 6.66 6.16 6.68 7.08 6.37 6.49 9.56 6.16
Shanghai 4.98 5.26 5.39 5.59 6.28 6.48 6.26 6.61 6.91 6.19 6.37 8.82 5.34
Jiangsu 5.42 5.93 6.23 6.88 7.39 7.70 7.30 8.08 8.51 7.74 7.99 11.74 7.27
Zhejiang 4.29 4.73 5.09 5.25 5.71 5.87 5.24 5.66 6.00 5.47 5.56 8.08 5.92
Fujian 5.64 6.28 6.72 7.06 7.50 7.59 7.01 7.62 8.05 7.34 7.48 10.65 5.96
Shandong 4.73 5.07 5.28 5.62 5.99 6.41 5.84 6.33 6.68 6.06 6.23 8.92 5.93
Guangdong 4.15 4.52 4.60 4.78 5.19 5.65 4.88 5.21 5.55 5.05 5.20 7.45 5.47
Guangxi 3.29 3.53 3.67 3.45 3.89 3.98 3.90 4.25 4.51 4.04 4.17 6.28 6.07
Hainan 3.62 3.98 4.08 4.33 4.73 4.86 4.53 4.87 5.11 4.60 4.68 6.80 5.91
average 4.72 5.17 5.40 5.67 6.19 6.45 6.00 6.48 6.83 6.16 6.33 9.14

Note: authors' calculations.

marine capital and labor can be presented as follows: industry's capital investment in the coastal areas promotes the
eK gk marine shipbuilding industry, oceanic oil and gas exploitation and
EK 1 ¼ 1 1 ð9Þ also development of modern fisheries.
ρ gY
From the perspective of regional differentiation, different
eL1 g l1 coastal provinces' marine capital contributions have exhibited
E L1 ¼   ð10Þ
ρ gY obvious discrepancies but an increasing trend. In 2000, Fujian's
marine capital contribution was the highest, and it amounted to a
EM ¼ EK 1 þEL1 ð11Þ 5.64% contribution to the national economy; this figure was
1.7 times the contribution of Guangxi province (the lowest figure
where EK 1 and EK2 represents the contribution to the region's
among the coastal provinces). In 2011, Jiangsu's marine capital
economic output of marine capital and labor, respectively. EM
contribution was the highest, amounting to an 11.74% contribution
represents the marine economies' contribution. Additionally, the
to the national economy. Similarly, this figure was 1.9 times the
regional marine economies' contribution is the sum of the marine
contribution of Guangxi province (the least contributive province).
capital contribution and marine labor contribution.
With respect to the marine capital contribution growth rate, Hebei
province's rate was the highest, which is mainly due to the rapid
4.2. Marine capital contributions development of the coastal heavy chemical industry. The highest
marine capital contribution region was from the Circum-Bohai Sea
Compared with the land economy, the marine economic Region, and the Pearl River Delta region's marine capital contribution
system itself has the characteristics of capital-heavy and was the lowest. In recent years, thousand-ton steel projects and other
technology-intensive production, and marine economic produc- major capital-intensive projects have settled in the Liaoning coastal
tion activities require more technological development. The pro- economic belt region, in Tianjin's new coastal region, in the Shandong
cess of moving marine scientific and technological achievements peninsula's blue economic zone, and in Hebei. Whereas these regions'
into greater productivity urgently requires the effective combina- contributions to GDP increased, these activities also cause marine
tion of capital markets and innovative industry. Along with the ecological and energy development pressure, and marine upgrades
strategy of large-scale development and utilization of national and the optimization of the industrial structure have become urgent
marine resources, the traditional production mode that has been problems to be solved in regional economic development. This result
relied on for marine labor inputs and extensive capital accumula- indirectly reflects the degree of dependence of regional economic
tion has been unable to adapt to the development goal of the growth on marine capital-intensive industries, which is deepening.
modern marine economy. Traditional industry is gradually being Furthermore, in some regions, such as the provinces comprising the
replaced by strategic emerging marine industries such as materi- Circum-Bohai Sea Region, modern marine industry is developing
als, the chemical industry, the energy industry, and the marine faster, and the economic transformation period from marine capital
equipment manufacturing industry. Most of these industries are that depends on advanced technology into a new point of regional
capital intensive and require technology investment inputs, which economic growth is shorter than in other regions. Guangxi, Hainan
is the objective requirement of modern marine economy devel- and other regions' marine capital contributions were lower because
opment in China. Overall (Table 4), the coastal regions' marine their marine economic development still relied on the support of the
capital elements3 made increasing economic contributions to the primary and tertiary marine industries.
national economic growth during 2000–2011 in China, and these
contributions rose from 4.72% in 2000 to 9.14% in 2011. Further-
more, the average annual economic contribution growth rate of 4.3. Marine labor contributions
these elements was 6.19%. The main contribution of marine capital
is through the development of marine capital-intensive industries, The average growth rate of marine labor4 was 22% during 2000–
which leads to related regional industrial development to realize 2011 in the coastal areas, which is nearly 20 times the land workforce's
contributions to national economic growth. The various inter- growth rate over the same period. Traditional marine industries such
relationships among the industries in the marine sector provide as fisheries are more dependent on these laborers, but the labor force
an important driver for continued development of these marine of marine science and technology has a higher growth rate. The
industries. For example, the marine equipment manufacturing human capital contribution of the marine economy to regional

3 4
According to the China Marine Statistical Yearbook, the term “marine capital” According to the China Marine Statistical Yearbook, the term “marine labor”
means the amount of ocean-related capital in coastal regions. means the number of ocean-related employed persons in a region.
X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237 235

Table 5
The contributions of marine labor (%).

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Growth rate

Tianjin 1.92 2.06 2.22 2.30 2.57 2.79 3.08 3.44 3.69 3.05 3.09 5.55 10.12
Hebei 1.50 1.63 1.75 2.05 2.23 1.73 2.13 2.42 2.62 2.15 2.20 4.16 9.70
Liaoning 2.78 3.46 3.60 3.70 4.06 4.13 4.57 5.09 5.42 4.51 4.60 8.10 10.21
Shanghai 1.68 1.87 1.93 2.06 2.23 2.35 2.52 2.87 3.12 2.55 2.62 4.98 10.40
Jiangsu 0.89 0.91 0.93 1.01 1.09 1.17 1.16 1.31 1.43 1.15 1.18 2.25 8.77
Zhejiang 1.63 1.79 1.85 1.93 2.23 2.46 2.36 2.66 2.87 2.35 2.41 4.44 9.52
Fujian 1.78 1.94 1.99 2.17 2.52 2.41 2.44 2.72 2.91 2.40 2.45 4.37 8.54
Shandong 1.47 1.62 1.64 1.80 1.97 1.45 2.08 2.35 2.53 2.08 2.12 3.93 9.38
Guangdong 1.58 1.73 1.75 1.78 1.95 1.33 2.28 2.57 2.77 2.26 2.31 4.24 9.37
Guangxi 1.42 1.58 1.66 1.73 1.98 2.40 2.03 2.28 2.45 2.00 2.02 3.69 9.06
Hainan 2.41 2.73 2.69 2.88 3.13 3.53 3.44 3.83 4.09 3.48 3.55 5.91 8.49
Average 1.73 1.94 2.00 2.13 2.36 2.34 2.55 2.87 3.08 2.54 2.60 4.69

Note: authors' calculations.

economic development has gradually become prominent. In the 4.4. The marine economy's contribution to the national economy
coastal regions, marine labor elements showed an upward trend in
their contribution to regional economic growth in China during 2000– The national economic system includes two relatively indepen-
2011, rising from 1.73% in 2000 to 4.69% in 2011, and the average dent economies that comprise the land-based and marine econo-
annual elements' economic contribution growth rate was 9.48%. mies' subsystems. This section analyzes the marine economic
Although this marine labor contribution was less than the marine system's contribution to the national economy. From 2000 to
capital contribution during the same period, the marine labor con- 2011, the marine economy's overall contribution to the national
tribution growth rate was 1.5 times the corresponding capital growth economy rose from 6.46% to 13.83%, and the average annual
rate. Thus, the human capital advantage of marine laborers is gradually growth rate was 7.17%. The contribution mainly came from marine
being reflected. The two main marine labor elements' contribution capital, which accounted for two-thirds of the sea-based economic
patterns are as follows. First, through the traditional industry input of contribution to the national economy. When the twelfth five-year
marine human resources into the economy of scale, marine labor plan's overall planning strategy for the marine economy proposed
elements promote regional economic growth, which belongs to the its rapid development, the contribution to the relevant regions
traditional pattern of economic growth. Second, the marine economy increased significantly. From 2010 to 2011, the growth of these
has a technology-intensive economic form, and labor itself realizes contributions to the national economy matched the growth rate of
marine labor elements' contribution to regional economic develop- the national economy. In provinces such as Liaoning, the local
ment through the effects of agglomeration and technology spillovers. marine economy's contribution accounted for nearly 20% of its
Table 5 addition to the national economy. In recent years, Liaoning's
From the viewpoint of regional differentiation, the regional coastal economic belt has developed gradually along with the
differences in marine labor contributions are greater than those development strategy of the Northeast Old Industrial Base and has
among the marine capital contributions, and the labor contribu- undertaken industrial transfers and upgrades, which highlights
tions also show an annually increasing trend. In 2011, Liaoning how the marine economy has become a new economic growth
province's marine labor contribution was 8.10% relative to regional point. Fig. 1 shows the contributions of different provinces' marine
economic growth, which was the largest in the provinces. economies' by average value during the 2000–2011 period. The
Whereas Jiangsu had the lowest marine labor contribution of marine economies' contribution is the contribution sum of the
2.25%, Liaoning's contribution was 3.6 times larger than this marine capital contribution and marine labor contribution. Liaon-
minimum value. With respect to the contribution growth rate, ing, Tianjin, Hebei and Fujian's contributions were higher than any
Shanghai's marine labor contribution growth rate was the largest, other provinces, and the contributions of Guangdong, Guangxi and
but the absolute contribution of Shanghai was lower. As a result, Jiangsu's marine economies were lower during this period. Table 6
the marine human capital advantage in Shanghai is not as For China's coastal regions, the various gaps in the regional
influential as in Liaoning. The result shows that although Shan- marine economies' contributions have been gradually widening
dong has more marine science and technology talents, its marine but stable from 2000 to 2011. The contribution of the Circum-
laborers' contribution to regional development was lower; thus, Bohai Sea Region's marine economy to the national economy was
the local government should increase its support for marine labor higher, particularly in Liaoning, Hebei and Tianjin provinces,
input and arouse their enthusiasm and creativity to make a larger whereas the contribution of Guangdong and Guangxi's marine
contribution to the local economic growth. There is a long process economy to the national economy was lower. For the contribution
through which marine labor forces resource change into human growth rate, the Circum-Bohai Sea Region had the fastest increase,
capital advantages and enhance their regions' economic growth, and the Pearl River Delta region's marine economy contribution
which requires cultivation mechanisms and incentives to attract growth rate was the lowest, which was due to the different
human capital. Above all else, economic growth requires adaptable historical processes of their marine economies and industrial
laborers who can be relied on in the marine industries' evolution, structures. Since the founding of the PRC, the Circum-Bohai Sea
and these laborers require incentives. At present, the development Region has implemented marine-economy development planning,
of the marine economy in China remains in the process of and its marine economy thus began developing relatively early.
extensive to intensive changes. The marine labor input is mainly Indeed, heavy industry and the chemical industry's layouts accel-
realized through traditional industries' contribution to regional erated its transformation and upgrading, which improved the
economic growth. Compared with land-based industry, marine contribution of this region's marine economy to the national
industry's overall labor contribution was lower than marine capital economy. The Pearl River Delta region's marine economy began
to regional economic growth during the 2000–2011 period. later and lacked a good marine capital basis; furthermore, its
236 X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237

Table 6
Contributions of the marine economy to the national economy (%).

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Growth rate

Tianjin 7.54 8.42 8.93 9.37 10.36 10.92 10.38 11.24 11.83 10.56 10.90 16.36 7.29
Hebei 6.77 7.60 7.91 8.58 9.37 9.35 9.67 10.58 11.25 9.51 9.81 15.59 7.87
Liaoning 7.73 8.71 9.10 9.50 10.50 10.78 10.73 11.76 12.49 10.88 11.10 17.65 7.80
Shanghai 6.65 7.12 7.32 7.65 8.51 8.83 8.78 9.48 10.03 8.74 9.00 13.79 6.85
Jiangsu 6.32 6.83 7.16 7.89 8.48 8.87 8.46 9.39 9.94 8.90 9.17 13.99 7.50
Zhejiang 5.93 6.52 6.95 7.17 7.93 8.33 7.60 8.32 8.87 7.82 7.97 12.52 7.04
Fujian 7.41 8.21 8.71 9.23 10.02 10.01 9.45 10.35 10.96 9.75 9.94 15.02 6.63
Shandong 6.20 6.69 6.92 7.41 7.96 7.86 7.92 8.68 9.21 8.14 8.36 12.85 6.85
Guangdong 5.73 6.25 6.34 6.56 7.14 6.98 7.15 7.78 8.32 7.32 7.51 11.69 6.70
Guangxi 4.71 5.11 5.33 5.19 5.88 6.38 5.93 6.52 6.96 6.04 6.19 9.97 7.06
Hainan 6.03 6.71 6.78 7.21 7.86 8.38 7.98 8.70 9.20 8.08 8.22 12.71 7.02
average 6.46 7.11 7.41 7.80 8.55 8.79 8.55 9.35 9.91 8.70 8.92 13.83

Note: authors' calculations.

Table 7 Table 8
The ranking of the local marine economies' contributions to the national economy. The classification of the local marine economies' contributions to the national
economy.
Marine capital Marine labor Marine economies'
contribution contribution contribution High capital–high High capital–low Low capital–high Low capital–low
labor labor labor labor
1 Tianjin Liaoning Liaoning
2 Jiangsu Hainan Tianjin Tianjin, Shanghai, Jiangsu, Hainan Guangdong,
3 Hebei Tianjin Fujian Liaoning, Hebei Guangxi,
4 Fujian Shanghai Hebei Fujian, Shandong,
5 Liaoning Fujian Shanghai Zhejiang
6 Shanghai Zhejiang Jiangsu
7 Shandong Hebei Shandong
8 Zhejiang Guangdong Hainan
accumulation and contribute to regional growth. Shanghai, Jiangsu
9 Guangdong Guangxi Zhejiang
10 Hainan Shandong Guangdong and Hebei belong to high capital-low labor contribution regions,
11 Guangxi Jiangsu Guangxi and these provinces' marine capital contributions have been
significantly higher than their marine labor contribution to the
national economy. The marine regional contribution mainly relies
marine economy's characteristics were not significant except in on capital investment and lacks the effective accumulation of
Hainan. human capital contributions. These regions have not fully utilized
Overall, the 2011 national GOP totaled 4.557 trillion yuan, the talent advantage of their marine professional labor force. By
which was an increase of 10.4% over the previous year, and this contrast, Hainan is the only low capital-high contribution region,
GOP accounted for 9.7% of the national gross domestic product. and the marine labor contribution in Hainan ranks second among
The growth rate of the marine economic contribution to the coastal regions. Hainan's marine economy development has relied
national economy was lower than the growth rate of the marine primarily on the tourism industry, particularly in building Inter-
economy itself, which suggests that the contribution of the marine national Tourism Island in Hainan through promoting coastal
economy has huge potential and can be further leveraged. tourism and local economic development. In addition, Hainan's
Furthermore, the contribution of the marine economy to the marine capital basis is weaker than that of Liaoning or Tianjin,
national economy calculated in this paper is more than the and Hainan's regional resource endowment advantage places
proportion of the marine economy that is accounted for in the particular emphasis on labor rather than capital. Both the marine
national economy, which indicates that the marine economy can capital and labor contributions to the national economy in Guang-
be used as a new economic growth point for the national economy. dong, Guangxi, Shandong and Zhejiang are relatively low, as their
This result has important strategic significance for deepening marine economies' contributions to the national economy have yet
reforms and for adjusting the economic structure in contemporary to be enhanced. Tables 7 and 8.
China.

4.5. Classification analysis 5. Conclusion

According to the average of the marine capital and labor The modern Chinese marine economy dates from in 1990. The
economic contributions to the national economy, the marine development of this economy is more dependent on marine capital
economy's contribution to the national economy is divided into than marine laborers, and this paper illustrates the capital-intensive
high capital-high labor regions, high capital-low labor regions, low characteristics of China's marine economy. The evolution of the marine
capital-high labor regions and low capital-low labor regions. The economic policy indicates that the development of China's marine
classification standard is that the top five provinces for marine economy has gradually transitioned from traditional marine industries
capital or labor contribution belong to a high capital or labor zone. to the emerging marine industries, from a single industry's develop-
Among these provinces, Liaoning, Tianjin and Fujian belong to the ment planning to the current, all-encompassing programmatic policy
regions in which both marine capital and marine labor's contribu- and from an extensive development mood to a sustainable, intensive
tions to the national economy have been higher. These regions' development mood. Among its regions, China's marine economy had
marine capital is mainly employed in the shipbuilding industry uneven characteristics during the 2000–2011 period. The regional
and the marine equipment manufacturing industry, and the differences in local marine economies' contributions to the national
advantages of marine human capital enhance the effect of economy are obvious, and these contributions have mainly come from
X.-Z. Jiang et al. / Marine Policy 50 (2014) 227–237 237

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