Agglomeration within industry, vertical spillovers related industries and enterprises efficiency — Based on panel data of Guangdong Province manufacturing enterprises

Abstract

Starting from micro-enterprise level, this paper used manufacturing enterprises in Guangdong Province of 2005–2007 balanced panel data to study enterprise efficiency, on which association within industry agglomeration and vertical industry spillover effect. In the paper, in order to eliminate existing TFP estimated endogenous variables; it uses “LP” method of treatment. Empirical findings within industry agglomeration on business efficiency have a significant positive effect; vertically related industries also overflow on Efficiency significant role in promoting. Conclusion is confirmed by localization economies and urbanization economies on China's economic growth and positive role.