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Agglomeration and Firm Export

Author

Listed:
  • Churen Sun

    (Department of Economics, Southwestern University of Finance and Economics, Chendu 611130, China)

  • Zhihao Yu

    (Department of Economics, Carleton University, Ottawa, Ontario, K1S 5B6, Canada)

  • Tao Zhang

    (International Business School, Shanghai University of International Business and Economics, Shanghai 201620, China)

Abstract

Using Chinese manufacturing data between 1998 and 2007, this paper investigates the impact of agglomeration on firm¡¯s export behavior. It is found that the agglomeration of manufacturing industries in China over this period increases firm¡¯s export probability as well as its export volume, and the impact is larger for more efficient firms. However, the impact on firm¡¯s export volume depends on the degree of agglomeration. When the degree of agglomeration is low, an increase in agglomeration would expand firm¡¯s export volume but the impact will be diminishing and even turns negative if the degree of agglomeration is already very high.

Suggested Citation

  • Churen Sun & Zhihao Yu & Tao Zhang, 2018. "Agglomeration and Firm Export," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 13(1), pages 116-132, March.
    • Handle: RePEc:fec:journl:v:13:y:2018:i:1:p:116-132
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-007-018-0009-9
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    Citations

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    Cited by:

    1. Bao, Xiaohua & Gao, Lei & Jin, Yu & Sun, Jin, 2023. "Industrial agglomeration and firm exports: Micro-evidence based on input-output linkages," Economic Modelling, Elsevier, vol. 119(C).
    2. Zhiqi Chen & Afshan Dar‐Brodeur, 2020. "Trade and labour standards: Will there be a race to the bottom?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 916-948, August.
    3. Hakan Yilmazkuday, 2011. "Agglomeration And Trade: State‐Level Evidence From U.S. Industries," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 139-166, February.

    More about this item

    Keywords

    agglomeration; firm export;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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