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Technological spillovers in space and firm productivity: Evidence from China’s electric apparatus industry

Ming He (), Yang Chen and Ron Schramm
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Yang Chen: IBSS, Xi’an Jiaotong-Liverpool University, China
Ron Schramm: SIPA, Columbia University, USA

Urban Studies, 2018, vol. 55, issue 11, 2522-2541

Abstract: Using a spatial econometric model this article studies the determinants and spatial spillovers of firm productivity in China’s electric apparatus industry over the period of 1999–2007. We apply Kelejian’s FE-2SLS procedure to a higher-order spatial autoregressive model and estimate the spatial dependence of firm-level TFP within and across regional borders. The model demonstrates positive and significant intra-regional technological spillovers among firms. It also provides direct evidence that technological spillovers attenuate rapidly in spatial distance. We find that firm productivity benefits from own R&D and export activities, employment density, market competition and public expenditure. Further analyses show that the strength of spillover effects is affected by a broad range of factors, including the surface area of the region, administration type, border effect, transport and ICT infrastructure, FDI intensity, the financial sector, the utility service sector, and human capital. Factors that facilitate long-distance economic connections in general make inter-regional spillovers stronger but intra-regional spillovers weaker.

Keywords: agglomeration; economic development; public expenditure; spatial autoregressive model; spillover; TFP; é›†è š; ç» æµŽå ‘å±•; 公共支出; 空间自回归模型; 溢出; å…¨è¦ ç´ ç”Ÿäº§çŽ‡ (TFP) (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:55:y:2018:i:11:p:2522-2541

DOI: 10.1177/0042098017720338

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