The New Geography of Manufacturing in China: The Internet and Manufacturing Agglomeration

Yanlin Sun, Shaoxiong Ma () and Hao Feng
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Yanlin Sun: School of Economics, Huazhong University of Science and Technology, Wuhan 430074, China
Shaoxiong Ma: School of Economics, Huazhong University of Science and Technology, Wuhan 430074, China
Hao Feng: School of Economics, Huazhong University of Science and Technology, Wuhan 430074, China

Sustainability, 2023, vol. 15, issue 17, 1-21

Abstract: The Internet has profoundly affected the spatial structure of cities, but few relevant studies have investigated it from the perspective of manufacturing agglomeration. Using panel data of prefecture-level cities in China covering the period 2003–2019, this paper studies how the Internet affects manufacturing agglomeration. The results show that there is a U-shaped relationship between the Internet and manufacturing agglomeration, and the underlying channel can be the enhancement of market potential. Human capital can enhance the role of the Internet in promoting manufacturing agglomeration. The findings can contribute to a better understanding of the relationship between the Internet and urban spatial structure in developing countries.

Keywords: Internet; manufacturing agglomeration; human capital; market potential (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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