The role of access to expressways on industrial clustering development in China

Yunfei Zhang and Kevin Chen

China Economic Review, 2025, vol. 93, issue C

Abstract: Infrastructure development is considered a key driver of industrial growth. In this study, we used the difference-in-differences method to examine the effect of access to expressways on industrial clustering development. Our findings highlight that access to expressways was associated with a 6.5 % increase in the number of firms in specific industries. The results remained robust after several endogeneity tests. Furthermore, our mechanism analysis demonstrated that the effect was driven by the reduction of trade costs and alleviation of information friction.

Keywords: Expressway; Industrial clustering; Regional development; China (search for similar items in EconPapers)
JEL-codes: D80 L60 O10 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:93:y:2025:i:c:s1043951x2500118x

DOI: 10.1016/j.chieco.2025.102460

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