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ID124554
Title ProperInfluences of production and R&D agglomeration on productivity
Other Title Informationevidence from Chinese electronics firms
LanguageENG
AuthorYang, Chih-Hai ;  Lin, Hui-Lin ;  Li, Hsiao-Yun
Publication2013.
Summary / Abstract (Note)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.
`In' analytical NoteChina Economic Review Vol.27, No.4; December 2013: p.162-178
Journal SourceChina Economic Review Vol.27, No.4; December 2013: p.162-178
Key WordsR&D ;  Agglomeration ;  Spillover ;  Productivity ;  Ellison Glaeser - EG ;  China ;  Economic Growth ;  Macro Economics