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The impact of co-agglomeration of distributive trades and manufacturing industry on export decision: mechanism and empirical

Hongying Peng

From the perspective of industry association, this paper examines the impact mechanism of co-agglomeration of distributive trades and manufacturing industry on the consumer goods manufacturers’ export decisions, and makes an empirical test using industry and enterprise data of 17 eastern cities in China for 2005-2009. The results show that the coagglomeration of distribution trades and manufacturing industry is an significantly positive determinant of consumer goods manufacturers’ export decisions. The tests of subsamples divided by manufacturing sub-sectors and enterprise scales also support the above conclusions. In its policy meaning, to facilitate consumer goods export of small and medium enterprises, we should strengthen the co-agglomeration of distributive trades and manufacturing industry.