Attenuation of Agglomeration Economies: Evidence from the Universe of Chinese Manufacturing Firms

This chapter is based on a study that tests the realities of agglomeration economies of scale due to clustering of small-scale manufacturing firms of the informal type in Zimbabwe. Little has been studied on how the informal sector thrives on agglomeration economies of scale in developing countries. Despite this lack of research, this chapter acknowledges the existence of strong networks among small-scale manufacturers in urban Zimbabwe. These linkages, contrary to practices within large-scale manufacturers, are cemented by strong ties of entrepreneurialism. With big manufacturers, the ties are usually worker-based and less defined along entrepreneurial lines. Using spatial statistical approach, the test revealed that tool sharing, output-input relationship, employment creation, and sharing of knowledge economies of scale are also evident in developing countries.

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The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia

Applied Economics ◽

10.1080/00036846.2015.1013614 ◽

2015 ◽

Vol 47 (31) ◽

pp. 3258-3275 ◽

Cited By ~ 3

Author(s):

Wahyu Widodo ◽

Ruhul Salim ◽

Harry Bloch

Keyword(s):

Technical Efficiency ◽

Agglomeration Economies ◽

Manufacturing Firms

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Measuring the Impacts of Roads Infrastructure on Manufacturing Location

CONVERTER ◽

10.17762/converter.349 ◽

2021 ◽

pp. 837-847

Author(s):

Yong Wan, Xianglin Xu

Keyword(s):

Economic Growth ◽

Agglomeration Economies ◽

Manufacturing Firms ◽

Policy Implications ◽

Heilongjiang Province ◽

Economic Activities ◽

Limited Impact ◽

Manufacturing Sectors ◽

Manufacturing Location ◽

Sustainable Economic Growth

Using a detailed dataset on manufacturing firms, this study analyses the link between roads infrastructure and manufacturing location in Heilongjiang province, China. The results show that the improvement in roads facilities has very limited impact on the agglomeration of economic activities in Heilongjiang province during the 2001-2013 period, but this impact has changed to be significantly positive during 2008-2013 period, which has seen greater concentration. The explanation for this finding could be that the local protectionism and failed market economy took place in Heilongjiang province more recently. We also try to differentiate this distributive effect of road infrastructures across manufacturing sectors. The empirical results show that the technology-intensive and labor-intensive firms show a greater preference for areas with better road networks, while the resource-oriented industries appear to be not attracted by better road infrastructure. Important policy implications emerge from our findings for transport planning, enabling manufacturing firms to benefit from agglomeration economies and regions to achieve sustainable economic growth.

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