Distance-Based Agglomeration Externalities and the Survival of Logistics Firms: Evidence From a Publicly Developed Logistics Park

Abstract

Numerous studies have shown that agglomeration externalities play a crucial role in the survival prospects of logistics firms. However, previous studies have largely ignored the role that agglomeration externalities play at a more granular level. Therefore, this paper used Chengdu International Railway Port as a case study, constructed a distance-based agglomeration measure to explore the impact of agglomeration externalities on the survival of logistics firms located within a publicly developed logistics park (PDLP). The results show that the three types of agglomeration externalities coexist and are highly localized in the PDLP, and their effects change with distance from the logistics firm. Specifically, the specialization externalities operate within 1.5 km of the logistics firm and produce competitive effects within immediate proximity (0.5 km). Second, while diversification externalities cause significant congestion effects, interindustry knowledge spillovers arising from related diversification externalities play a key role in the 0.5 km proximity of logistics firms, and unrelated diversification externalities play a positive role in reducing the market transaction costs of logistics firms outside the 0.5 km range.