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Hao, Xu ; Marlon, Seror ; Marlon, Seror ; Stephan, Heblich ; Stephan, Heblich ; Yanos, Zylberberg ; Yanos, Zylberberg. (2019) Industrial clusters in the long run: evidence from Million-Rouble plants in China.
In: CESifo Working Paper Series. RePEc:ces:ceswps:_7682.

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Bo Yibo, a prominent leader personally involved in the design of the “156” program, outlines four main criteria guiding the location decision process (Bo, 1991). Plants had to be built close to natural resources to reduce transportation costs and avoid waste. Places easily accessible through the road and railway network should be favored, so as to reach down- and upstream firms and end-consumer markets at a lower cost. Regions with no pre-existing industrial base would be given priority. Conditional on meeting these first criteria, state-of-the-art Soviet-sponsored plants were to be built out of the reach of U.S. and Taiwanese bombers.

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