What Factors Influence the Diffusion of the Mobile Communications Industry: A Case Study from China


  • The corresponding author is Laijun Luo and his e-mail address is laijunluo@163.com. We are grateful to anonymous referees, Huifen Cai, Jie Zhang, Junxin Feng and Jidong Yang for helpful comments and suggestions. This paper is supported by the National Natural Science Foundation of China (71003027), the Fundamental Research Funds for the Central Universities and the Research Funds of Renmin University of China (10XNK054).


Mobile communications have experienced rapid growth in China and play an increasingly important role in the country’s economic development. However, there is still vast regional imbalance in China’s communications industry which we will be exploring here, including examining what factors influence diffusion paths and cause these differences. Through a two-step estimate method, this paper successfully describes the differences in the diffusion paths of mobile communications in different regions of China. It evaluates the impacts of industry variables, intra-regional income gaps, macroeconomic factors (such as degree of urbanisation) and geographic effects of neighbouring provinces. Our work may be helpful to inform policymaking for effective and equitable development.