Industry Relatedness, Agglomeration Externalities and Firm Survival in China

Canfei He, Qi Guo and David Rigby

No 1528, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: The importance of agglomeration externalities for economic activities is widely recognized. Recent developments highlight the importance of industry relatedness to the performance of firms, industries and regions. This study explores the determinants of firm survival in China and tests the significance of industry relatedness using firm-level data over the period 1999-2007. Industry relatedness is developed from the co-occurrence analysis of paired industries. Results based on Cox regression models show that firms benefiting from industry relatedness and governmental supports are more likely to survive. However, the influence of relatedness varies across industries and provinces. This study highlights the significant influence of local forces on firm dynamics and enriches our understanding of regional industrial restructuring in China.

Keywords: Industry relatedness; Agglomeration Externalities; Firm Survival; China (search for similar items in EconPapers)
Date: 2015-09, Revised 2015-09
New Economics Papers: this item is included in nep-bec, nep-cna, nep-geo, nep-sbm, nep-tra and nep-ure
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1528

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