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Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms

Yang, C. H.; Lin, H. L.; Li, H. Y.

China economic review. VOL 27, ; 2013, 162-178 -- Elsevier Science B.V., Amsterdam. Part; (pages 162-178) -- 2013

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  • Title:
    Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms
  • Author: Yang, C. H.;
    Lin, H. L.;
    Li, H. Y.
  • Found In: China economic review. VOL 27, ; 2013, 162-178
  • Journal Title: China economic review.
  • Subjects: Economics; LCC: HC426; Dewey: 330.9
  • Publication Details: Elsevier Science B.V., Amsterdam.
  • Language: English
  • Abstract: As China adopts a government-supported agglomeration model to develop high-tech industries, it is crucial to examine whether the spatial concentration of manufacturing and R&D activities enhance firm-level productivity. Based on a panel dataset of Chinese electronics firms from 2005 to 2007, the calculated Ellison-Glaeser (EG) index indicates that both production and R&D activities are highly spatially concentrated. Crucially, we find that production agglomeration has a positive relationship with firms' productivity, especially for smaller firms. In contrast, R&D agglomeration seems to negatively relate with productivity. It implies that the possible congestion effect and/or free rider problems erode the benefit derived from knowledge spillovers.
  • Identifier: Journal ISSN: 1043-951X
  • Publication Date: 2013
  • Physical Description: Electronic
  • Accrual Information: Quarterly
  • Shelfmark(s): 3180.138100
  • UIN: ETOCRN343109270

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