Does agglomeration promote internationalization of Chinese firms? |
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| Institution: | 1. School of Economics, Senshu University, 2-1-1 Higashi-mita, Tama-ku, Kawasaki-shi, Kanagawa 214-8580, Japan;2. Research Department of Industrial Economy, Development Research Center of the State Council, R. 248, No. 225, Chaoyangmen Nei Dajie, Beijing 100010, China;3. Organisation for Economic Co-operation and Development, Structural Surveillance Division, Economics Department, 2 Rue André Pascal, Paris 75016, France;1. School of GeoSciences, University of Edinburgh, Drummond Street, Edinburgh EH8 9XP, United Kingdom;2. Land Economy, Environment and Society Group, Scotland''s Rural College (SRUC), Peter Wilson Building, Nicholas Kemmer Road, Edinburgh EH9 3FH, United Kingdom;3. Social, Economic and Geographical Sciences Group, The James Hutton Institute, Craigiebuckler, Aberdeen AB15 8QH, United Kingdom;4. Sustainability Research Institute, School of Earth and Environment, University of Leeds, Leeds LS2 9JT, United Kingdom;5. School of Geography and Planning, University of Cardiff, Glamorgan Building, King Edward VII Avenue, Cardiff CF10 3WA, United Kingdom;1. Dolinks School of Economics and Management, University of Science and Technology Beijing, Beijing, China;2. Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing, China;3. School of Economics and Management, University of Chinese Academy of Science, Beijing, China;4. Post-Doctoral Research Center, Industrial and Commercial Bank of China Limited, Beijing, China |
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| Abstract: | 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. |
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