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Manufacturing productivity in China: Deconstructing the role of Agglomeration

Author

Listed:
  • Chen, Yang

    (Division of Economics, Xi'an Jiaotong-Liverpool University)

  • He, Ming

    (Division of Economics, Xi'an Jiaotong-Liverpool University)

  • Rudkin, Simon

    (SHU-UTS SILC Business School, University of Shanghai)

Abstract

Economists talk of agglomeration bene ting rms but little work has sought to understand the impact various consequences of close location of rms has on productivity. Using unconditional quantile regression for the rst time in productivity we revisit the Chinese Industry Survey, from 1999 to 2007, to ask (a) how does spatial competition, local diversity, population density and regional specialisation impact across the productivity distribution, and (b) how have these effects changed through China's opening up to foreign direct investment. High productivity firms bene t more from specialist agglomerations, monopoly and can take larger advantage of market size compared to those which are less productive.

Suggested Citation

  • Chen, Yang & He, Ming & Rudkin, Simon, 2017. "Manufacturing productivity in China: Deconstructing the role of Agglomeration," RIEI Working Papers 2017-04, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    • Handle: RePEc:xjt:rieiwp:2017-04
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    References listed on IDEAS

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    Keywords

    Unconditional Quantile Regression; Manufacturing Productivity; China; Agglomeration.;
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