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Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China

Ruochen Dai, Dilip Mookherjee, Yingyue Quan and Xiaobo Zhang ()

No 15396, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We examine how exposure of Chinese firms to the Covid-19 shock varied with a cluster index (measuring spatial agglomeration of firms in related industries) at the county level. Two data sources are used: entry flows of newly registered firms in the entire country, and an entrepreneur survey regarding operation of existing firms. Both show greater resilience in counties with a higher cluster index, after controlling for industry dummies and local infection rates, besides county and time dummies in the entry data. Reliance of clusters on informal entrepreneur hometown networks and closer proximity to suppliers and customers help explain these findings.

Keywords: China; Clusters; COVID-19; firms; Social Networks (search for similar items in EconPapers)
JEL-codes: D31 I3 J12 J16 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-cse, nep-ent, nep-net, nep-sbm and nep-ure
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Related works:
Journal Article: Industrial clusters, networks and resilience to the Covid-19 shock in China (2021) Downloads
Working Paper: INDUSTRIAL CLUSTERS, NETWORKS AND RESILIENCE TO THE COVID-19 SHOCK IN CHINA (2020) Downloads
Working Paper: Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China (2020) Downloads
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