Does Specialized Agglomeration Promote Global Supply Chain Security of China’s Manufacturing Sector?

Lijing Shang, Saiful Aman, Abdulkhabir Rahmat and Ruifeng Jia

Chinese Economy, 2025, vol. 58, issue 5, 417-436

Abstract: Although the body of research on supply chain security is growing, few of the studies are quantitative. Researchers have investigated the influence of specialized agglomerations on many aspects of China’s economy, but there is little study on supply chain security. This study develops an evaluation framework for global supply chain security and employs location quotient to evaluate the specialized agglomeration. The paper selects the relevant variables of China’s manufacturing sectors to construct panel data and adopts a mixed effect model to verify the impact of specialized agglomeration on the supply chain security of China’s manufacturing sector. The empirical evidence demonstrates that specialized agglomeration positively influences the supply chain security of China’s manufacturing sector. Specialized agglomeration has a greater impact on China’s high-end manufacturing industry than its low-end manufacturing industry. This study further verifies that there is no turning point in the impact of specialized agglomeration on the supply chain security of China’s manufacturing industry, and the two are purely linear relationships.

Date: 2025
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DOI: 10.1080/10971475.2025.2456314

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