Agglomeration and productivity in China: Firm level evidence

Hu, Caihong; Xu, Zhaoyuan; Yashiro, Naomitsu

doi:10.1016/j.chieco.2015.01.001

Cited by 71 publications

(40 citation statements)

References 43 publications

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“…Furthermore, the large enterprise dummies exert positive and statistically significant effect on ln(value added), while the coefficients for SME dummy are negative and statistically significant. This means that larger scale enterprises are more likely to achieve efficient productivity, which is consistent with previous findings for Chinese industries from Bai et al (2004) and Hu et al (2015).…”

Section: Hntidz and Financial Effect On Enterprise Economic Performancesupporting

confidence: 81%

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High and New Technology Enterprise Performance and Financial Constraints: Is Clustering Efficient?

Shu

Yano²

2017

AEF

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Using firm level panel data for non-listed high and new technology enterprises in the Yangtze River Delta of China from 2002-2009, we investigated the importance of the high and new technology industrial development zone (HNTIDZ) established by the Chinese government for improving enterprise performance. We found that high and new technology enterprises located in HNTIDZs enjoy superior productivity, growth potential, export and innovation activity; better access to trade credit and bank loan facilities plays a significant role in promoting productivity, growth and export, but it does not affect innovation activity; in national HNTIDZs, enterprises that are more in need of trade credit and bank loan have better performance in the respect of productivity, growth, export as well as innovation activity.

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Section: Hntidz and Financial Effect On Enterprise Economic Performancesupporting

confidence: 81%

“…This is consistent with some previous studies, e.g. Lin et al (2011) and Hu et al (2015). Net profit also has significance in estimates for enterprise productivity, implying that improved cash flow may promote enterprise productivity.…”

Section: Hntidz and Financial Effect On Enterprise Economic Performancesupporting

confidence: 81%

High and New Technology Enterprise Performance and Financial Constraints: Is Clustering Efficient?

Shu

Yano²

2017

AEF

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“…In China, the state designation of special economic zones and development of industrial clusters are recognized as being two important engines of its extraordinary growth over the past three decades (Fan and Scott, 2003). For instance, more than 100 clusters were created across 60 Chinese cities since 1995, accounting for 14% of China's productivity growth between 1998 and 2007 (Hu et al, 2015). In spite of the rapid pace of agglomeration in certain areas, other areas face an insufficient level of agglomeration due to the implementation of uneven market reforms, interregional competition and distortionary activities of local policies (Au and Henderson, 2006).…”

Section: Introductionmentioning

confidence: 99%

Technological relatedness and asymmetrical firm productivity gains under market reforms in China

Howell

Rui-xia

et al. 2016

CAMRES

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This article employs fixed effect quantile regression techniques to study the effects of technological relatedness on firm productivity and to investigate whether the size of those effects varies for low and high performing firms. Next, we consider how changes in the local industrial mix brought about by China's market reforms influence the ability of different types of firms to benefit from technological-related spillovers. The findings highlight the important role that technological relatedness has on increasing firm productivity, providing some support for the idea that regions should pursue a strategy of 'regional branching' to evolve the local industrial mix into related economic activities. The findings also reveal, however, that increasing technological relatedness may asymmetrically harm underperforming firms and widen disparities in productivity between local firms.

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“…Kuncoro (2009) mentioned that the impact of agglomeration in term of localization and urbanization economies enhance labor productivity in Jakarta and Surabaya metropolitan areas in three periods of 1990-1995, 1997-2000, and 2001-2003, emphasizing that localization economies are more significant than urbanization economies. Similarly, agglomeration will improve the productivity growth (Rizov et al, 2012;Widodo et al, 2015;Hu et al, 2015). Azari et al, (2016) also found that the urban labor productivity is determined by traditional inputs of agglomeration economies.…”

Section: Plsmentioning

confidence: 96%

Agglomeration and Urban Manufacture Labor Productivity in Indonesia

Wibowo¹,

Kudo

2019

Signifikan

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Agglomeration, the spatial concentration of industries in a specific location, has been argued to improve productivity since it could provide positive externalities such as knowledge spillover, input sharing, and labor pooling. This paper examines the effect of large and medium manufacturing industry (LMI) agglomeration on labor productivity. Measuring the output and labor density as agglomeration effect by using 2009-2014 panel data from 44 cities and regions across the metropolitan areas of Indonesia, this study shows that in terms of output share, agglomeration positively contributes to labor productivity. On the other hand, in terms of labor density, agglomeration results in a negative impact on productivity. These findings suggest the government should expand industrial clusters in less densely populated areas, especially outside the island of Java, by providing necessary infrastructures such as electricity, ports, and roads, so that this development creates favorable economic conditions for investment and industrial development in such areas. AbstrakAglomerasi, konsentrasi spasial industri di lokasi tertentu, dikaitkan untuk meningkatkan produktivitas karena eksternalitas positif yang ditimbulkan seperti limpahan pengetahuan (knowledge spillover), sharing input produksi, dan penggabungan tenaga kerja (labor pooling). Makalah ini mengkaji pengaruh aglomerasi industri manufaktur besar dan sedang (IBS) terhadap produktivitas tenaga kerja. Efek aglomerasi diukur menggunakan output dan kepadatan tenaga kerja. Dengan menggunakan data panel dari 44 kota dan kabupaten di seluruh wilayah metropolitan di Indonesia dari 2009-2004, penelitian ini menunjukkan bahwa aglomerasi bersifat sebagai pedang bermata dua. Dalam hal share output, aglomerasi secara positif berkontribusi terhadap produktivitas tenaga kerja. Di sisi lain, dalam hal kepadatan tenaga kerja, aglomerasi menghasilkan dampak negatif pada produktivitas. Temuan-temuan ini mengindikasikan bahwa pemerintah harus memperluas klaster industri di daerah-daerah berpenduduk rendah, terutama di luar pulau Jawa, dengan menyediakan infrastruktur dasar seperti listrik, pelabuhan, dan jalan, sehingga pembangunan ini menciptakan kondisi ekonomi yang menguntungkan untuk investasi dan pengembangan industri daerah tersebut.Kata Kunci: aglomerasi, output industry, kepadatan tenaga kerja, produktivitas tenaga kerja JEL Code: R11, R12, J24

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Agglomeration and productivity in China: Firm level evidence

Cited by 71 publications

References 43 publications

High and New Technology Enterprise Performance and Financial Constraints: Is Clustering Efficient?

High and New Technology Enterprise Performance and Financial Constraints: Is Clustering Efficient?

Technological relatedness and asymmetrical firm productivity gains under market reforms in China

Agglomeration and Urban Manufacture Labor Productivity in Indonesia

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