The Birth of Edge Cities in China: Measuring the Spillover Effects of Industrial Parks

64 Pages Posted: 20 Jul 2015 Last revised: 12 Aug 2015

See all articles by Siqi Zheng

Siqi Zheng

Hang Lung Center for Real Estate, Tsinghua University

Weizeng Sun

Tsinghua University

Jianfeng Wu

Fudan University

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Date Written: July 2015

Abstract

Several Chinese cities have invested billions of dollars to construct new industrial parks. These place based investments solve the land assembly problem which allows many productive firms to co-locate close to each other. The resulting local economic growth creates new opportunities for real estate developers and retailers that develop properties and stores close to the new park. The city mayor has the political clout and the personal promotion incentives to anticipate these effects as he chooses whether and where within the city to build the park. Using several geo-coded data sets, we measure the localized spillover effects of the new parks on local incumbent firm productivity, the growth of retail activity close to the park and local real estate pricing and construction. We document the heterogeneous effects of investment in parks. Those parks featuring a higher level of human capital, a greater level of co-agglomeration among firms within the park, and a smaller share of State Owned Enterprises offer greater spillover effects.

Suggested Citation

Zheng, Siqi and Sun, Weizeng and Wu, Jianfeng and Kahn, Matthew E., The Birth of Edge Cities in China: Measuring the Spillover Effects of Industrial Parks (July 2015). NBER Working Paper No. w21378. Available at SSRN: https://ssrn.com/abstract=2633334

Siqi Zheng (Contact Author)

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://www.siqizheng.cn

Weizeng Sun

Tsinghua University ( email )

No Address Available

Jianfeng Wu

Fudan University

Matthew E. Kahn

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
12
Abstract Views
387
PlumX Metrics