Testing geographic and economic distance of agglomeration economies

Junjie Hong

Journal of Chinese Economic and Foreign Trade Studies, 2011, vol. 4, issue 1, 55-59

Abstract: Purpose - The purpose of this paper is to test geographic and economic distance of industrial agglomeration. Design/methodology/approach - Based on a recent census database in China, we estimate the production function of Chinese firms, focusing on the impact of agglomeration economies. Findings - The estimation results provide strong evidence that agglomeration effects decline with increasing geographic and economic distance. Originality/value - Previous studies examine agglomeration effects at certain geographic and industrial level, but largely ignore that agglomeration benefit may be different at different levels of geography and industry. This paper contributes to the literature by examining the geographic and economic distance of agglomeration economies, and shows a clear pattern on geographic and industrial scope of agglomeration economies.

Keywords: Agglomeration; National economy; Economic sectors; China; Industrialized economies (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jcefts:v:4:y:2011:i:1:p:55-59

DOI: 10.1108/17544401111106815

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