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Yanos ZYLBERBERG ( University of Bristol ) – "Industrial clusters in the long run : Evidence from Million-Rouble plants in China"

November 3, 2020 @ 3:00 pm - 4:00 pm
The Microeconometrics Seminar: Every Tuesday
Time: 03:00 pm – 4:00 pm
Date: 3rd of November 2020
by visio
Yanos ZYLBERBERG ( University of Bristol  ) – “Industrial clusters in the long run : Evidence from Million-Rouble plants in China”

Abstract: We identify the négative spillovers exerted by large, successful factories on other local production units in China. A short-lived coopération program be- tween the U.S.S.R. and China led to the construction of 156 “Million-Rouble plants” in the 1950s. The identification exploits the ephemeral geopolitical context and exogenous variation in location decisions due to the relative position of allied and enemy airbases. We find a rise-and-fall pattern in counties hosting a factory and show that (over-) specialization explains their long-run decline. The analysis of production linkages shows that a very large cluster of non-innovative establishments enjoy technological rents along the production chain of Million-Rouble plants. This industrial concentration reduces the local supply of entrepreneurs.

Joint with Stephan Heblich, Marion Seror and Hao Xu.


Benoît SCHMUTZ (Laboratoire de Microéconométrie-CREST)
Anthony STRITTMATTER (Laboratoire de Microéconométrie-CREST)