Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms

Chih Hai Yang; Hui Lin Lin; Hsiao Yun Li

doi:10.1016/j.chieco.2013.09.005

Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms

Chih Hai Yang, Hui Lin Lin, Hsiao Yun Li

Department of Economics

Research output: Contribution to journal › Article › peer-review

27 Scopus citations

Abstract

As China adopts a government-supported agglomeration model to develop high-tech industries, it is crucial to examine whether the spatial concentration of manufacturing and R&D activities enhance firm-level productivity. Based on a panel dataset of Chinese electronics firms from 2005 to 2007, the calculated Ellison-Glaeser (EG) index indicates that both production and R&D activities are highly spatially concentrated. Crucially, we find that production agglomeration has a positive relationship with firms' productivity, especially for smaller firms. In contrast, R&D agglomeration seems to negatively relate with productivity. It implies that the possible congestion effect and/or free rider problems erode the benefit derived from knowledge spillovers.

Original language	English
Pages (from-to)	162-178
Number of pages	17
Journal	China Economic Review
Volume	27
DOIs	https://doi.org/10.1016/j.chieco.2013.09.005
State	Published - Oct 2013

Keywords

Agglomeration
Productivity
R&D
Spillover

Access to Document

10.1016/j.chieco.2013.09.005

Cite this

@article{b8637d787e034a5a8adf7a33bc3bcbb7,

title = "Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms",

abstract = "As China adopts a government-supported agglomeration model to develop high-tech industries, it is crucial to examine whether the spatial concentration of manufacturing and R&D activities enhance firm-level productivity. Based on a panel dataset of Chinese electronics firms from 2005 to 2007, the calculated Ellison-Glaeser (EG) index indicates that both production and R&D activities are highly spatially concentrated. Crucially, we find that production agglomeration has a positive relationship with firms' productivity, especially for smaller firms. In contrast, R&D agglomeration seems to negatively relate with productivity. It implies that the possible congestion effect and/or free rider problems erode the benefit derived from knowledge spillovers.",

keywords = "Agglomeration, Productivity, R&D, Spillover",

author = "Yang, {Chih Hai} and Lin, {Hui Lin} and Li, {Hsiao Yun}",

year = "2013",

month = oct,

doi = "10.1016/j.chieco.2013.09.005",

language = "???core.languages.en_GB???",

volume = "27",

pages = "162--178",

journal = "China Economic Review",

issn = "1043-951X",

}

TY - JOUR

T1 - Influences of production and R&D agglomeration on productivity

T2 - Evidence from Chinese electronics firms

AU - Yang, Chih Hai

AU - Lin, Hui Lin

AU - Li, Hsiao Yun

PY - 2013/10

Y1 - 2013/10

N2 - As China adopts a government-supported agglomeration model to develop high-tech industries, it is crucial to examine whether the spatial concentration of manufacturing and R&D activities enhance firm-level productivity. Based on a panel dataset of Chinese electronics firms from 2005 to 2007, the calculated Ellison-Glaeser (EG) index indicates that both production and R&D activities are highly spatially concentrated. Crucially, we find that production agglomeration has a positive relationship with firms' productivity, especially for smaller firms. In contrast, R&D agglomeration seems to negatively relate with productivity. It implies that the possible congestion effect and/or free rider problems erode the benefit derived from knowledge spillovers.

AB - As China adopts a government-supported agglomeration model to develop high-tech industries, it is crucial to examine whether the spatial concentration of manufacturing and R&D activities enhance firm-level productivity. Based on a panel dataset of Chinese electronics firms from 2005 to 2007, the calculated Ellison-Glaeser (EG) index indicates that both production and R&D activities are highly spatially concentrated. Crucially, we find that production agglomeration has a positive relationship with firms' productivity, especially for smaller firms. In contrast, R&D agglomeration seems to negatively relate with productivity. It implies that the possible congestion effect and/or free rider problems erode the benefit derived from knowledge spillovers.

KW - Agglomeration

KW - Productivity

KW - R&D

KW - Spillover

UR - http://www.scopus.com/inward/record.url?scp=84887007975&partnerID=8YFLogxK

U2 - 10.1016/j.chieco.2013.09.005

DO - 10.1016/j.chieco.2013.09.005

M3 - 期刊論文

AN - SCOPUS:84887007975

SN - 1043-951X

VL - 27

SP - 162

EP - 178

JO - China Economic Review

JF - China Economic Review

ER -

Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms

Abstract

Keywords

Access to Document

Fingerprint

Cite this