Testing geographic and economic distance of agglomeration economies
Journal of Chinese Economic and Foreign Trade Studies
ISSN: 1754-4408
Article publication date: 8 February 2011
Abstract
Purpose
The purpose of this paper is to test geographic and economic distance of industrial agglomeration.
Design/methodology/approach
Based on a recent census database in China, we estimate the production function of Chinese firms, focusing on the impact of agglomeration economies.
Findings
The estimation results provide strong evidence that agglomeration effects decline with increasing geographic and economic distance.
Originality/value
Previous studies examine agglomeration effects at certain geographic and industrial level, but largely ignore that agglomeration benefit may be different at different levels of geography and industry. This paper contributes to the literature by examining the geographic and economic distance of agglomeration economies, and shows a clear pattern on geographic and industrial scope of agglomeration economies.
Keywords
Citation
Hong, J. (2011), "Testing geographic and economic distance of agglomeration economies", Journal of Chinese Economic and Foreign Trade Studies, Vol. 4 No. 1, pp. 55-59. https://doi.org/10.1108/17544401111106815
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited