Economic agglomeration and product quality upgrading: evidence from China

Dinggen Zhou, Yanguang Liu, Xiaohang Ren, Cheng Yan, Yukun Shi

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

Based on merged custom import and export data and Chinese industrial enterprise data, this paper studies the influence of economic agglomeration incurred by urbanization in China on the products’ quality upgrading. We find that economic agglomeration can improve the product quality of Chinese enterprises. We further show that in the context of deepening trade liberalization, economic agglomeration leads enterprises to import more various intermediate products, thus helping to upgrade the quality of final products. The increase in the proportion of intermediate products imported from high-income countries will strengthen the role of economic agglomeration in upgrading the quality of products.

Original languageEnglish (US)
Pages (from-to)377-395
Number of pages19
JournalJournal of Chinese Economic and Business Studies
Volume20
Issue number4
DOIs
StatePublished - 2022
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

Keywords

  • Economic agglomeration
  • intermediate product input
  • quality upgrading

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