Clustering, Growth, and Inequality in China

54 Pages Posted: 2 Jan 2018

See all articles by Di Guo

Di Guo

Brunel University London

Kun Jiang

University of Roehampton

Cheng-Gang Xu

The University of Hong Kong

Xiyi Yang

ShanghaiTech University - School of Entrepreneurship and Management

Multiple version iconThere are 2 versions of this paper

Date Written: December 2017

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: D2, H7, O1, R1, R3

Suggested Citation

Guo, Di and Jiang, Kun and Xu, Cheng-Gang and Yang, Xiyi, Clustering, Growth, and Inequality in China (December 2017). CEPR Discussion Paper No. DP12543, Available at SSRN: https://ssrn.com/abstract=3095593

Di Guo (Contact Author)

Brunel University London ( email )

Kingston Lane
Uxbridge
United Kingdom, London Ub8 3PH
United Kingdom

HOME PAGE: http://https://www.brunel.ac.uk/people/di-guo

Kun Jiang

University of Roehampton ( email )

Roehampton Lane
London, SW15 5PU
United Kingdom

Cheng-Gang Xu

The University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Pokfulam HK
China

Xiyi Yang

ShanghaiTech University - School of Entrepreneurship and Management ( email )

100 Haike Rd
Pudong Xinqu, Shanghai
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
451
PlumX Metrics