Agglomeration of knowledge intensive business services and urban productivity1. (27th December 2015)

• Record Type: Journal Article
• Authors: Zhang, Cui
• Is Part Of: Papers in regional science. Volume 95:Number 4(2016:Nov.)
• Page Start: 801
• Page End: 818
• Publication Date: 2015-12-27
• Subjects: Knowledge intensive business services -- productivity -- agglomeration -- China; Regional planning -- Periodicals; City planning -- Periodicals; Urbanization -- Periodicals; Economic geography -- Periodicals; 307.12
• DOI: 10.1111/pirs.12204
• Languages: English
• ISSNs: 1056-8190

Abstract

Abstract: While there is considerable empirical evidence on the productivity‐enhancing effects of manufacturing agglomeration, the impacts of knowledge intensive business services (KIBS) agglomeration have rarely been examined. We propose a mechanism‐based framework to study the precise channels through which KIBS agglomeration contributes to urban productivity. By estimating a model of urban productivity that incorporates agglomeration of manufacturing, KIBS and non‐KIBS using city‐level data from China, we find that KIBS agglomeration is an important source of aggregate urban productivity. The importance of KIBS agglomeration in city productivity growth is systematically related to a city's level of economic development.