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The Impact of Logistics Industrial Clusters on Manufacturing Total Factor Productivity and its Urban Heterogeneity

Author(s)

Yaozong Zhu1, Kung-Don Ye2, Cuilian Kong3, Hsiu-Hua Hu4

Affiliation(s)

1Nanjing Vocational Institute of Railway Technology, Nanjing, Jiangsu, China 2Department of Shipping and Transportation Management, National Taiwan Ocean University, Keelung, Taiwan, China 3Institute of Science Innovating and Culture, Rajamangala University of Technology Krungthep, Bangkok, Thailand 4Department of International Business, Ming Chuan University, Taipei, Taiwan, China

Abstract

The formation of a logistics industry cluster through the agglomeration of logistics enterprises within a specific area can enhance the overall factor productivity of urban manufacturing by facilitating regional factor circulation and optimizing resource allocation. Utilizing panel data from 284 cities at or above prefecture level in China between 2012 and 2019, we established a spatial econometric model to examine the impact of logistics industry clusters on manufacturing's total factor productivity. Our findings demonstrate that logistics industry clusters significantly enhance urban manufacturing's total factor productivity. Heterogeneity analysis reveals that such clusters have a notably positive effect on both megacities and small cities in eastern and western regions, while exhibiting an opposite effect in central cities. Furthermore, during the late stage of industrialization, logistics industry clusters play a significant role in promoting city development. Mechanism analysis results indicate that the development of logistics industry clusters positively influences manufacturing's total factor productivity by enhancing the specialization level and industrial collaboration within the logistics sector.

Keywords

Logistics; Logistics Industry Cluster; Manufacturing; Total Factor Productivity; Spatial Spillover Effect

References

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