Specialization and Diversification of the Marine Industry and Marine Economic Growth: An Example from Chinese Coastal Areas

Song, M.; Wang, Q.; Wang, S., and Zhou, L., 2021. Specialization and diversification of the marine industry and marine economic growth: An example from Chinese coastal areas. Journal of Coastal Research, 37(1), 203–215. Coconut Creek (Florida), ISSN 0749-0208.With an increasing shortage of land resources and increasing pressure regarding population and environment, many countries and regions have turned their attention toward oceans. Based on the externality theory, this study innovatively examines how specialization and diversification affect marine economic growth. Based on the panel data of 11 Chinese coastal provinces from 2006 to 2014, the article use location entropy and diversification indexes to measure the specialization and diversification of marine industry. The study analyzes both linear and nonlinear relationships between specialization and diversification and marine economic growth. The empirical results show that both specialization and diversification have a positive influence on marine economic growth; however, diversification was found to play a more important role. This study specifically studied the differences in effects on regions with different industrial scales. The findings show that there are different U-shaped nonlinear relationships between specialization and diversification and marine economic growth under different industrial scales. Finally, this article offers implications of the study and corresponding policy recommendations for restructuring the marine industry in each area.