| ID | 143412 |
| Title Proper | Does agglomeration promote internationalization of Chinese firms? |
| Language | ENG |
| Author | Ito, Banri ; Yashiro, Naomitsu ; Xu, Zhaoyuan |
| Summary / Abstract (Note) | Knowledge spillover from the agglomeration of exporters can reduce the initial costs of exporting faced by other firms and thereby facilitate exports. We use a large dataset of Chinese manufacturing firms to assess whether industrial agglomeration lowers the minimum productivity level required for exporting and whether it increases a firm's probability of exporting. Semi-parametric quantile regressions reveal that the productivity advantage of exporters against non-exporters is markedly smaller in agglomerated regions. Furthermore, a parametric estimation of an export entry model indicates that the agglomeration of incumbent exporters contributes significantly to export participation, although its magnitude is limited. These spillover effects are generated not only by the agglomeration of exporting foreign invested firms (FIFs), but also, more importantly, by that of indigenous Chinese exporters. In fact, the agglomeration of exporting FIFs only contributes to the export entry of FIFs. |
| `In' analytical Note | China Economic Review Vol. 34; Jul 2015: p.109-121 |
| Journal Source | China Economic Review 2015-07 34 |
| Key Words | Export ; Productivity ; Spillover ; Agglomeration |