Spillovers across industries and regions in China’s regional economic diversification

Industrial diversification depends on spillovers from related industries and nearby regions, yet their interaction remains largely unclear. We study economic diversification in China during the period 1990–2015 and present supportive evidence on both spillover channels. We add to the literature by s...

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Main Authors: Gao, Jian, Jun, Bogang, Pentland, Alex, Zhou, Tao, Hidalgo, César A.
Format: Article
Language:English
Published: Regional Studies 2021
Online Access:https://hdl.handle.net/1721.1/130383
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author Gao, Jian
Jun, Bogang
Pentland, Alex
Zhou, Tao
Hidalgo, César A.
author_facet Gao, Jian
Jun, Bogang
Pentland, Alex
Zhou, Tao
Hidalgo, César A.
author_sort Gao, Jian
collection MIT
description Industrial diversification depends on spillovers from related industries and nearby regions, yet their interaction remains largely unclear. We study economic diversification in China during the period 1990–2015 and present supportive evidence on both spillover channels. We add to the literature by showing that these two channels behave as substitutes when explaining new entries and exits, and by using acceleration campaigns of high-speed rail to address some endogeneity concerns with regional spillovers. Our findings confirm the role of relatedness and geographical distance in the diffusion of economic capabilities and support the idea that improvements in transportation can facilitate the diffusion of productive capabilities.
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spelling mit-1721.1/1303832021-04-07T03:06:21Z Spillovers across industries and regions in China’s regional economic diversification Gao, Jian Jun, Bogang Pentland, Alex Zhou, Tao Hidalgo, César A. Industrial diversification depends on spillovers from related industries and nearby regions, yet their interaction remains largely unclear. We study economic diversification in China during the period 1990–2015 and present supportive evidence on both spillover channels. We add to the literature by showing that these two channels behave as substitutes when explaining new entries and exits, and by using acceleration campaigns of high-speed rail to address some endogeneity concerns with regional spillovers. Our findings confirm the role of relatedness and geographical distance in the diffusion of economic capabilities and support the idea that improvements in transportation can facilitate the diffusion of productive capabilities. 2021-04-06T13:16:46Z 2021-04-06T13:16:46Z 2021-03-31 Article https://hdl.handle.net/1721.1/130383 Gao, J., Jun, B., Pentland, A. S., Zhou, T., & Hidalgo, C. A. (2021). Spillovers across industries and regions in China’s regional economic diversification. Regional Studies, 1-16. en Attribution-NonCommercial-ShareAlike 3.0 United States http://creativecommons.org/licenses/by-nc-sa/3.0/us/ application/pdf Regional Studies
spellingShingle Gao, Jian
Jun, Bogang
Pentland, Alex
Zhou, Tao
Hidalgo, César A.
Spillovers across industries and regions in China’s regional economic diversification
title Spillovers across industries and regions in China’s regional economic diversification
title_full Spillovers across industries and regions in China’s regional economic diversification
title_fullStr Spillovers across industries and regions in China’s regional economic diversification
title_full_unstemmed Spillovers across industries and regions in China’s regional economic diversification
title_short Spillovers across industries and regions in China’s regional economic diversification
title_sort spillovers across industries and regions in china s regional economic diversification
url https://hdl.handle.net/1721.1/130383
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AT junbogang spilloversacrossindustriesandregionsinchinasregionaleconomicdiversification
AT pentlandalex spilloversacrossindustriesandregionsinchinasregionaleconomicdiversification
AT zhoutao spilloversacrossindustriesandregionsinchinasregionaleconomicdiversification
AT hidalgocesara spilloversacrossindustriesandregionsinchinasregionaleconomicdiversification