Exit Spillovers of Foreign-invested Enterprises in Shenzhen's Electronics Manufacturing Industry

Hanqiao Zhang

Abstract: Neighborhood characteristics have been broadly studied with different firm behaviors, e.g. birth, entry, expansion, and survival, except for firm exit. Using a novel dataset of foreign-invested enterprises operating in Shenzhen's electronics manufacturing industry from 2017 to 2021, I investigate the spillover effects of firm exits on other firms in the vicinity, from both the industry group and the industry class level. Significant neighborhood effects are identified for the industry group level, but not the industry class level.

Date: 2024-04
New Economics Papers: this item is included in nep-bec, nep-cse and nep-sbm
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