Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/196826 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12329
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine how city size affect wage levels of cities (agglomeration externality) and how it influence surrounding cities (spill-over effect) in China for the period between 1995 and 2009. Using spatial fixed-effect panel data models and allowing for endogenous and exogenous spatial dependence, we find strong positive city size effect on real wage levels, which confirms the existence of agglomeration economy within cities. We also find significant differences in both the direct and indirect effect of factors such as FDI between more and less population dense areas.
Subjects: 
agglomeration economy
spill-over
spatial econometrics
fixed-effects
JEL: 
C23
R12
R23
Document Type: 
Working Paper

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