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Transport infrastructure and industrial agglomeration: Evidence from manufacturing industries in China
Abstract The determinants of industrial agglomeration have attracted worldwide attention as a research topic since the 1990s; however, there is still some divergence of opinion on the relationship between transport infrastructure and industrial agglomeration. To reconcile these divergent views, we take highways as a typical example of transport infrastructure and undertake an empirical examination based on a sample of 1,660,551 observations of Chinese manufacturing firms covering the period 1998 to 2007. The findings confirm that highway improvement has a positive impact on industrial agglomeration as a whole. We also find that the impact is heterogeneous across industry groups: improvement in the highway network positively affects the agglomeration of non-locally based industries and relationship industries but negatively affects the agglomeration of locally based industries and non-relationship industries.
Highlights This study provides empirical evidence supporting the positive impact of infrastructure improvement on industrial agglomeration as a whole. This study found that transport infrastructure improvement has heterogenerous impact on different industries positively affects the agglomeration of non-locally based industries and relationship industries but negatively affects the agglomeration of locally based industries and non-relationship industries. This study discusses the mechanism of agglomeration and dispersion forces and deepens the understanding of ‘new economic geography.’.
Transport infrastructure and industrial agglomeration: Evidence from manufacturing industries in China
Abstract The determinants of industrial agglomeration have attracted worldwide attention as a research topic since the 1990s; however, there is still some divergence of opinion on the relationship between transport infrastructure and industrial agglomeration. To reconcile these divergent views, we take highways as a typical example of transport infrastructure and undertake an empirical examination based on a sample of 1,660,551 observations of Chinese manufacturing firms covering the period 1998 to 2007. The findings confirm that highway improvement has a positive impact on industrial agglomeration as a whole. We also find that the impact is heterogeneous across industry groups: improvement in the highway network positively affects the agglomeration of non-locally based industries and relationship industries but negatively affects the agglomeration of locally based industries and non-relationship industries.
Highlights This study provides empirical evidence supporting the positive impact of infrastructure improvement on industrial agglomeration as a whole. This study found that transport infrastructure improvement has heterogenerous impact on different industries positively affects the agglomeration of non-locally based industries and relationship industries but negatively affects the agglomeration of locally based industries and non-relationship industries. This study discusses the mechanism of agglomeration and dispersion forces and deepens the understanding of ‘new economic geography.’.
Transport infrastructure and industrial agglomeration: Evidence from manufacturing industries in China
Liu, Zheming (author) / Zeng, Saixing (author) / Jin, Zhizhou (author) / Shi, Jonathan Jingsheng (author)
Transport Policy ; 121 ; 100-112
2022-04-02
13 pages
Article (Journal)
Electronic Resource
English
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