The effects of urban transformation on productivity spillovers in China

We analyze the impact of China's massive urban-transformation process on productivity spillovers for east-coast electrical apparatus sector by combining sub-prefecture-level population census data in 2000 and 2010 with detailed firm-level from 1999 to 2007. At sub-prefecture level, we identify three types regions (metro-core, metro-ring, non-metro) develop urban transformation measures (modernization, mobility, disparity). A tailored spatial Durbin model enables us distinguish between intra- inter-regional technology spillovers. The baseline reveals strong neighboring firms, particularly those close range. All have significant impacts Modernization mobility boost spillover effects, whereas economic disparity impedes Based structural difference regions, our findings imply that metro-ring non-metro are major beneficiaries related transformation.