Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China

Dilip Mookherjee, Ruochen Dai, Yingyue Quan and Xiaobo Zhang

No 15396, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.

Keywords: Clusters; Covid-19; China; Firms; Social Networks (search for similar items in EconPapers)
JEL-codes: D31 I3 J12 J16 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-cse, nep-ent, nep-net, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Industrial clusters, networks and resilience to the Covid-19 shock in China (2021)
Working Paper: INDUSTRIAL CLUSTERS, NETWORKS AND RESILIENCE TO THE COVID-19 SHOCK IN CHINA (2020)
Working Paper: Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China (2020)
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