Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201908
Authors: 
Heblich, Stephan
Seror, Marlon
Xu, Hao
Zylberberg, Yanos
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7682
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper exploits a short-lived cooperation program between the U.S.S.R. and China, which led to the construction of 156 “Million-Rouble plants” in the 1950s. We isolate exogenous variation in location decisions due to the relative position of allied and enemy airbases and study the long-run impact of these factories on local economic activity. While the “156” program accelerated industrialization in treated counties until the end of the command-economy era, this significant productivity advantage fully eroded in the subsequent period. We explore the nature of local spillovers responsible for this pattern, and provide evidence that treated counties are overspecialized and far less innovative. There is a large concentration of establishments along the production chain of the Million-Rouble plants, which limits technological spillovers across industries.
Subjects: 
industrial clusters
agglomeration economies
specialization
JEL: 
R11
R53
J24
N95
Document Type: 
Working Paper

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