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Trade shocks, new industry entry and industry relatedness

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  • Jiaochen Liang

Abstract

Trade shocks, new industry entry and industry relatedness. Regional Studies. This paper examines the relationship between trade shocks and new industry entry at the regional level. Results show that US urban counties experiencing greater Chinese import penetration are more likely to develop new industries. From an evolutionary perspective, these trade shock-induced new industries may bring new growth opportunities to the local economy. It is also found that the positive impacts of trade shocks on industry entry are enhanced by industry relatedness. This suggests trade shock-induced industrial branching is also path dependent and can be influenced by the pre-existing industry structure of a region.

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  • Jiaochen Liang, 2017. "Trade shocks, new industry entry and industry relatedness," Regional Studies, Taylor & Francis Journals, vol. 51(12), pages 1749-1760, December.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:12:p:1749-1760
    DOI: 10.1080/00343404.2016.1245415
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    1. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
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    Cited by:

    1. Roberto Antonietti & Ron Boschma, 2021. "Social capital, resilience, and regional diversification in Italy [Social capital, innovation and growth: evidence from Europe]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 762-777.
    2. Liang, Jiaochen & Goetz, Stephan J., 2018. "Technology intensity and agglomeration economies," Research Policy, Elsevier, vol. 47(10), pages 1990-1995.

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