Neighbor-Cities Effects and Export Comparative Advantage
JIANG Lingduo, LU Yi, CHEN Yongbing
School of International Trade and Economics,University of International Business and Economics; School of Economics and Management, Tsinghua University; School of Economics, Xiamen University
Abstract:
Fostering new export advantages and expanding regional development space are important initiatives for cultivating economic development power in the 13th Five Year Plan. The construction of urban agglomeration provides the possibility for cultivation of new export advantages. We use a matching data of Chinese export data and city-level data over the period 2000-2006 to study the dynamic effect of intercity spatial proximity on the cities' export comparative advantages. The results reveal that intercity interactions have significant effects on both the export of new products and incumbent products of adjacent cities, and the effects are most significant in southeast of China which mainly includes the Yangtze River Delta and the Pearl River Delta; The effects are also mainly reflected on adjacent cities' non-advantage export products, mid-and low-skilled technology-intensive products. Adjacent cities are necessary conditions for the effects. The government should accelerate the construction of urban agglomeration to facilitate the intercity interactions to promote the export comparative advantage cultivation.
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