Infrastructure and Inventory Adjustment:A Comprehensive Perspective of Market Size, Competition and Transportation Cost
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| Title | Infrastructure and Inventory Adjustment:A Comprehensive Perspective of Market Size, Competition and Transportation Cost
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| Author | Xun Zhang and Xu Wang |
| Organization | School of Statistics, Beijing Normal University；Peking University |
| Email | zhangxun@bnu.edu.cn； |
| Key Words | Infrastructure; Inventory; Market Size; Competition; Transportation Cost |
| Abstract | This paper discusses how infrastructure can affect inventory. We use a new database of infrastructure which considers infrastructure quality and the database of industrial enterprises, providing evidence that infrastructure can affect inventory adjustment through market expansion, competition aggravation and transportation cost reduction. Among them, the market expansion channel is the primary one. This paper enriches the discussion of infrastructure and inventory adjustment. More importantly, as we overcome the endogeneity problem, this paper sheds light on important role in economic development. We prove that infrastructure can enlarge firm’s scale, improve firm’s efficiency and enhance market vitality. |
| Serial Number | WP950 |
| Time | 2015-11-03 |
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