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Published in: The Annals of Regional Science 1/2021

18-07-2020 | Original Paper

Industry linkage, spatial correlation, and city exports: case study of the textile and clothing export industry in China

Authors: Shulin Wan, Weixin Luan, Qiaoqiao Lin

Published in: The Annals of Regional Science | Issue 1/2021

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Abstract

Many studies focus on economic growth in cities, but few investigate urban export growth. This paper discusses city export differences from the perspective of industry linkage and spatial correlation. The study employs a spatial simultaneous equation to investigate these issues using 2007–2016 customs data obtained from the Chinese customs database and Chinese prefecture-level city panel data. We examine three sub-industries of the textile and clothing export industry as an example: chemical fiber exports, textile exports, and clothing exports. Our findings show that the demand linkage is greater than the cost linkage within a city, the intra-industry spatial interactions across cities lead to export agglomeration, and the inter-industry spatial interactions across cities lead to export dispersion. Further, in general, promoting the development of only the downstream export industry will drive the expansion of the upstream export industry. This study provides a new explanation to better understand the spatial distribution of China’s exports, thereby offering important policy implications for stabilizing national development.

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Appendix
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Footnotes
1
The choice of the textile and clothing export industry is explained in Sect. 3.
 
2
In this paper, the inter-city industry linkage is regarded as a spatial effect. When only industry linkage is mentioned hereafter, it refers to industry linkage within the city.
 
3
The set of IV proposed by Kelejian and Prucha (2004) and Arraiz et al. (2010) is \(H = \left( {X_{n} ,W_{n} X_{n} , \ldots ,W_{n}^{s} X_{n} } \right)\), X is the exogenous explanatory variable. Generally, s takes 1 or 2. s = 1 is used for model estimation and s = 2 for robustness test.
 
4
This idea comes from the first law of geography: “everything is related to everything else, but near things are more related than distant things” (Tobler 1970).
 
5
These results may be driven by the spread-backwash effects in Perroux’s Growth Pole Theory. For an detailed discussion, please see Ke and Feser (2010).
 
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Metadata
Title
Industry linkage, spatial correlation, and city exports: case study of the textile and clothing export industry in China
Authors
Shulin Wan
Weixin Luan
Qiaoqiao Lin
Publication date
18-07-2020
Publisher
Springer Berlin Heidelberg
Published in
The Annals of Regional Science / Issue 1/2021
Print ISSN: 0570-1864
Electronic ISSN: 1432-0592
DOI
https://doi.org/10.1007/s00168-020-01011-4

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