ShanghaiTech SEM Working Paper No. 2018-007
Di Guo
The University of Hong Kong
Kun Jiang
The University of Roehampton
Chenggang Xu
CKGSB, HKU, Tsinghua University
Xiyi Yang
ShanghaiTech University - School of Entrepreneurship and Management
Abstract
This study examines the effects of China’s industrial clusters on its economic growth and urban–rural income inequality. A density-based index (DBI) is developed to capture the unique features of such clusters in China. From a county-level DBI panel data constructed based on firm-level and county-level datasets, we find that strong clusters and entrepreneurial clusters substantially enhance economic growth. Moreover, entrepreneurial clusters reduce urban–rural income inequality by increasing the income of rural residents. Identification issues are carefully addressed by deploying an instrumental variable approach.
Keywords: China, clustering, geography, growth and inequality, institutions
JEL Classification: O14, O15, R11
Date Written: September, 2017
Available at SSRN: http://ssrn.com/abstract= 3159741
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【No. 2018-007】SSRN-2 Clustering, Growth, and Inequality in China.pdf
