  We investigate structural change in the PR China during a period of
particularly rapid growth 1998-2014. For this, we utilize sectoral data from
the World Input-Output Database and firm-level data from the Chinese Industrial
Enterprise Database. Starting with correlation laws known from the literature
(Fabricant's laws), we investigate which empirical regularities hold at the
sectoral level and show that many of these correlations cannot be recovered at
the firm level. For a more detailed analysis, we propose a multi-level
framework, which is validated with empirically. For this, we perform a robust
regression, since various input variables at the firm-level as well as the
residuals of exploratory OLS regressions are found to be heavy-tailed. We
conclude that Fabricant's laws and other regularities are primarily
characteristics of the sectoral level which rely on aspects like
infrastructure, technology level, innovation capabilities, and the knowledge
base of the relevant labor force. We illustrate our analysis by showing the
development of some of the larger sectors in detail and offer some policy
implications in the context of development economics, evolutionary economics,
and industrial organization.
