Wednesday, 1 April 2015

Secret of Chinese economic miracle

There have been many studies on the Chinese economy and many have tried to explain the secret of the long run growth since the 80s. Now a study has arisen showing the origins of this success. 

Now it can be revealed that the success factor can be found within the cluster theory, based on agglomeration economics. The major cities in China host the highest amount of KFC's fine dining establishments in the world, and this agglomeration has created the basis for the economic success. According to reliable sources, China hosts most KFCs in the world with 4563 units, which is exponentially more than in other countries. 

The following maps show the spatial agglomeration in Beijing and Shanghai, which are the main economic centres of the country. 

(Source: Google Maps, 2015) 

(Source: Google Maps, 2015) 


KFC applied for a licence in China 1987 during, which is about the same time as the economic growth has started. 




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