This paper examines the impact of highway construction on the size distribution of manufacturing firms using Chinese firm and highway network data. I construct instrumental variables using historical and counterfactual road approaches to identify the causal effects of highway construction. I find that highway construction can increase firm size dispersion and market concentration. Areas near highways have a higher number of firms, more outsourcing activities, and more large firms; while areas further from highways have a higher share of new entry firms.
机构:
Chongqing Jiaotong Univ, Sch Econ & Management, Chongqing, Peoples R ChinaChongqing Jiaotong Univ, Sch Econ & Management, Chongqing, Peoples R China
Zheng, Huan
He, Yu
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机构:
Chongqing Technol & Business Univ, Res Ctr Econ Upper Reaches Yangtse River, Chongqing, Peoples R ChinaChongqing Jiaotong Univ, Sch Econ & Management, Chongqing, Peoples R China
机构:
School of Business, Sun Yat-sen University
Center for Accounting, Finance and Institutions, Sun Yat-sen UniversitySchool of Business, Sun Yat-sen University
Guilong Cai
Guojian Zheng
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机构:
School of Business, Sun Yat-sen University
Center for Accounting, Finance and Institutions, Sun Yat-sen UniversitySchool of Business, Sun Yat-sen University
Guojian Zheng
Qiankun Gu
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机构:
School of Economics and Management, Wuhan UniversitySchool of Business, Sun Yat-sen University
机构:
Victoria Univ Wellington, Sch Econ & Finance, POB 600, Wellington 6140, New ZealandGuangdong Univ Foreign Studies, Sch Finance, Guangzhou, Guangdong, Peoples R China