Skip to main content

TESTING URBANIZATION ECONOMIES IN MANUFACTURING INDUSTRIES: URBAN DIVERSITY OR URBAN SIZE?

Buy Article:

$51.00 plus tax (Refund Policy)

Abstract:

ABSTRACT Whether urbanization economies stem from urban diversity or urban scale is not clear in the literature. This paper uses the 2004 China manufacturing census data and tests simultaneously the effects of urban size and industrial diversity on firm productivity, controlling for localization economies and human capital externalities. We find that productivity increases with city size—but at a diminishing rate, and the city size effect becomes negative for cities with population over two million. Firms also benefit from industrial diversity, and the strength of such benefit increases with city size but decreases with firm size. The characteristics of agglomeration economies in a transition economy are also discussed.

Document Type: Research Article

DOI: https://doi.org/10.1111/j.1467-9787.2010.00702.x

Affiliations: 1: Research Institute of Economics and Management, Southwestern University of Finance and Economics, 55 Guanghua Cun Street, Chengdu, 610074, China; and Cheung Kong Graduate School of Business, Beijing, 100738, China. 2: School of International Trade and Economics, University of International Business and Economics, 10 East Huixin Street, Chaoyang District, Beijing, 100029, China.

Publication date: 2011-08-01

  • Access Key
  • Free ContentFree content
  • Partial Free ContentPartial Free content
  • New ContentNew content
  • Open Access ContentOpen access content
  • Partial Open Access ContentPartial Open access content
  • Subscribed ContentSubscribed content
  • Partial Subscribed ContentPartial Subscribed content
  • Free Trial ContentFree trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more