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

Ruochen Dai, Dilip Mookherjee, Yingyue Quan and Xiaobo Zhang

No 28000, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: L25 O14 (search for similar items in EconPapers)
Date: 2020-10
New Economics Papers: this item is included in nep-cna, nep-geo, nep-sbm and nep-ure
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Published as Dai, Ruochen & Mookherjee, Dilip & Quan, Yingyue & Zhang, Xiaobo, 2021. "Industrial clusters, networks and resilience to the Covid-19 shock in China," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 433-455.

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Related works:
Journal Article: Industrial clusters, networks and resilience to the Covid-19 shock in China (2021)
Working Paper: INDUSTRIAL CLUSTERS, NETWORKS AND RESILIENCE TO THE COVID-19 SHOCK IN CHINA (2020)
Working Paper: Industrial Clusters, Networks and Resilience to the Covid-19 Shock in China (2020)
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