The impact of co-agglomeration of distributive trades and manufacturing industry on export ratio: A Tobit empirical study

Hongying Peng

Abstract

This paper makes empirical tests on the influences of co-agglomeration of distributive trades and manufacturing industry on the consumer goods manufacturers’ export ratio using industry and enterprise data of 17 eastern cities in China for 2005-2009. The results show that the former is an significantly positive determinant of the latter, and there is a nonlinear "inverted U shape" relationship between them in the long term. The policy meaning lies in that strengthening the co-agglomeration helps raise export ratios of small and medium enterprises that produce consumer goods, but it should also be avoided that the negative effect of extra high co-agglomeration degree on export ratio.