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Spatial agglomeration and firm productivity: Does trade status matter?

Author

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  • Qing Liu
  • Jian Wang

Abstract

This study uses micro‐level panel data from Chinese manufacturing firms to investigate the impact of spatial agglomeration on firm productivity, taking a firm’s engagement in international trade into consideration. Embracing firm heterogeneity in trade status, we find that non‐exporters benefit from urban agglomeration through manufacturing specialization, whereas little effect of local specialization on productivity is found among exporters. The findings are driven mainly by processing exporters involved in straightforward assembly. These findings increase the understanding of heterogeneous productivity gains from urban agglomeration and the spatial economy in China. Este estudio utiliza datos de panel a nivel microeconómico de empresas manufactureras chinas para investigar el impacto de la aglomeración espacial en la productividad de las empresas, teniendo en cuenta su participación en el comercio internacional. Teniendo en cuenta la heterogeneidad de las empresas en relación con su estatus comercial, se encontró que las no exportadoras se benefician de la aglomeración urbana por medio de la especialización manufacturera, mientras que entre las exportadoras apenas se encuentran efectos de la especialización local en la productividad. Los resultados se deben principalmente a las empresas de transformación exportadoras que se dedican al ensamblaje directo. Estos resultados aumentan el conocimiento sobre las ganancias de productividad heterogéneas de la aglomeración urbana y la economía espacial en China. 本稿では、中国の製造業のマイクロレベルのパネルデータを用いて、企業の国際貿易への関与を考慮に入れ、空間集積性が企業の生産性に与える影響を検討した。取引の状態における企業の不均一性を受け入れることにより、非輸出業者は製造の特化による都市集積の恩恵を受けるが、輸出業者には、地域の特化が生産性に及ぼす効果はほとんど認められない。この知見は、主に単純な組み立てを行う輸出加工業者に顕著である。この知見から、中国における都市集積から得られる生産性の向上の不均一性と空間経済がより理解される。

Suggested Citation

  • Qing Liu & Jian Wang, 2022. "Spatial agglomeration and firm productivity: Does trade status matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 5-18, November.
    • Handle: RePEc:bla:rgscpp:v:14:y:2022:i:s2:p:5-18
    DOI: 10.1111/rsp3.12461
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    References listed on IDEAS

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