 Financial agglomeration and firms' domestic value added in exports: Evidence from ChinaMufang Xie, Binbin Yu and Changbiao Zhong International Review of Economics & Finance, 2025, vol. 103, issue C Abstract: Using data on 145,687 Chinese firms from 2003 to 2013, we examine the impact of financial agglomeration on the ratio of domestic value added in exports to gross exports (DVAR) of firms. We find that both local financial agglomeration and spatial spillover significantly increase firms' DVAR. The primary mechanisms driving this relationship are the facilitation of research and development innovation and the reduction of financing costs. The positive impact of financial intermediary agglomeration on DVAR is more pronounced, and the spillover effect of financial agglomeration on DVAR increases with the level of the financial center. Financial agglomeration exerts greater positive impacts on DVAR of upstream value chain firms, general trade firms, private firms, and small-scale firms. We also demonstrate that financial marketization amplifies the positive effect of financial agglomeration. Keywords: Financial agglomeration; Domestic value added in exports; Spatial spillover; Financial marketization (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025005878 DOI: 10.1016/j.iref.2025.104424 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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