Geographical agglomeration and co-agglomeration of exporters and nonexporters in China

There is growing literature providing insights on the mechanism of industrial agglomeration in the transitional China. Although industries with more exports are found more agglomerated, the extent, process, and determinants of agglomeration of exporting enterprises remain under-explored due to data availability issue. Based on the Annual Survey of Industrial Firms in 2002 and 2007, this study investigated driving forces of the spatial agglomeration of exporters and the co-agglomeration of exporters and nonexporters using three digit level industries as observations. The empirical results imply that agglomeration benefits underpin the agglomeration of exporters and their co-agglomeration with nonexporters.