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作者

来源

REGIONAL SCIENCE AND URBAN ECONOMICS,Vol.74,P.81-98

语言

英文

关键字

Firm selection; Market size; Market fragmentation; Productivity; Manufacturing; PROTECTIONISM; TRADE

作者单位

[Ding, Chengri] Univ Maryland, Urban Studies & Planning Program, College Pk, MD 20742 USA. [Ding, Chengri] Zhengzhou Univ, Urban Dev Res Ctr, Zhengzhou 450003, Henan, Peoples R China. [Niu, Yi] Capital Univ Econ & Business, Int Sch Econ & Management, 121 Zhangjialukou, Beijing 100070, Peoples R China. Niu, Y (reprint author), Capital Univ Econ & Business, Int Sch Econ & Management, 121 Zhangjialukou, Beijing 100070, Peoples R China. E-Mail: cding@umd.edu; niuyi_2002@163.com

摘要

This paper investigates the selection effects of market size on firm productivity by using firm-level data on Chinese manufacturing industries for the period 1998-2007. China's provinces are an appropriate proxy for market size due to local (provincial) protectionism, which generates fragmented domestic markets. The estimated results using a quanta approach show significant selection effects for 15 out of 29 sectors. We find that provinces above the median employment density weed out approximately two to eight percent more firms than those below the median density. Further, market size tends to generate greater selection effects in the sectors with stronger local protections, scale economies or product differentiation. We also find that firm selection effects are robust with respect to alternative productivity estimates, grouping criteria, and spatial units, but can be different across types of firms and may suffer from underestimation due to the noise in productivity estimates and the exclusion of small firms.