The role of related variety and exporting on a firm’s labour productivity in pollution-intensive industries in China

Shanshan Dou, Junguo Shi, Bert Sadowski, Binghong Liu and David Alemzero

Applied Economics, 2025, vol. 57, issue 28, 4025-4036

Abstract: This study investigates the influence of regional industrial variety and export activities on labour productivity in China’s pollution-intensive manufacturing sectors from 2003 to 2009. Analysing data from 345,654 firms, we discover that regional related variety significantly boosts labour productivity. Moreover, this study reveals that firms with a higher export ratio experience an amplified benefit from the related variety on labour productivity. Our findings suggest the need for comprehensive policies that balance economic growth with environmental sustainability, emphasizing the nuanced role of industrial variety and global market integration in shaping productive efficiency.

Date: 2025
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DOI: 10.1080/00036846.2024.2342075

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