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Effect of industrial transfer on industrial chain resilience: Quasi-experimental evidence from China

Author

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  • Ren, Yayun
  • Gao, Wen
  • Yu, Yantuan

Abstract

Amid deglobalization, facilitating the orderly relocation of industries and enhancing industrial chain resilience (ICR) serve as critical pillars for sustaining economic stability. This study develops a theoretical model to examine how the National Industrial Relocation Demonstration Zone (NIRDZ) policy affects ICR. The staggered difference-in-differences estimates indicate that the NIRDZ policy significantly increases ICR by approximately 2.2 percentage points. A series of robustness checks further support this finding. Additionally, the heterogeneous effects of the NIRDZ policy on ICR are investigated across differences in industrial development, resource endowments, and environmental regulations. The scale, agglomeration, and structural effects are identified as the primary mechanisms. This paper underscores the pivotal role of industrial relocation in enhancing ICR and provides new empirical evidence and valuable insights for strengthening ICR in developing economies.

Suggested Citation

  • Ren, Yayun & Gao, Wen & Yu, Yantuan, 2026. "Effect of industrial transfer on industrial chain resilience: Quasi-experimental evidence from China," Economic Analysis and Policy, Elsevier, vol. 92(C), pages 498-517.
    • Handle: RePEc:eee:ecanpo:v:92:y:2026:i:c:p:498-517
    DOI: 10.1016/j.eap.2026.06.030
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    Keywords

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    JEL classification:

    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • 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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