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Economic agglomeration and product quality upgrading: evidence from China

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  • Dinggen Zhou
  • Yanguang Liu
  • Xiaohang Ren
  • Cheng Yan
  • Yukun Shi

Abstract

Based on merged custom import and export data and Chinese industrial enterprise data, this paper studies the influence of economic agglomeration incurred by urbanization in China on the products’ quality upgrading. We find that economic agglomeration can improve the product quality of Chinese enterprises. We further show that in the context of deepening trade liberalization, economic agglomeration leads enterprises to import more various intermediate products, thus helping to upgrade the quality of final products. The increase in the proportion of intermediate products imported from high-income countries will strengthen the role of economic agglomeration in upgrading the quality of products.

Suggested Citation

  • Dinggen Zhou & Yanguang Liu & Xiaohang Ren & Cheng Yan & Yukun Shi, 2022. "Economic agglomeration and product quality upgrading: evidence from China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 20(4), pages 377-395, October.
    • Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:377-395
    DOI: 10.1080/14765284.2021.1985933
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    Cited by:

    1. Zhipeng Gao & Zhenyu Wang & Mi Zhou, 2023. "Is China’s Urbanization Inclusive?—Comparative Research Based on Machine Learning Algorithms," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    2. Dong, Kangyin & Jia, Rongwen & Zhao, Congyu & Wang, Kun, 2023. "Can smart transportation inhibit carbon lock-in? The case of China," Transport Policy, Elsevier, vol. 142(C), pages 59-69.
    3. Chun‐Yu Ho & Yue Sheng, 2022. "Productivity advantage of large cities for creative industries," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1289-1306, December.

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