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The role of access to expressways on industrial clustering development in China

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  • Zhang, Yunfei
  • Chen, Kevin

Abstract

Infrastructure development is considered a key driver of industrial growth. In this study, we used the difference-in-differences method to examine the effect of access to expressways on industrial clustering development. Our findings highlight that access to expressways was associated with a 6.5 % increase in the number of firms in specific industries. The results remained robust after several endogeneity tests. Furthermore, our mechanism analysis demonstrated that the effect was driven by the reduction of trade costs and alleviation of information friction.

Suggested Citation

  • Zhang, Yunfei & Chen, Kevin, 2025. "The role of access to expressways on industrial clustering development in China," China Economic Review, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:chieco:v:93:y:2025:i:c:s1043951x2500118x
    DOI: 10.1016/j.chieco.2025.102460
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    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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