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Origin Agglomeration, Overseas Market and Institutional Environment
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TitleOrigin Agglomeration, Overseas Market and Institutional Environment  
AuthorZhang Yili,Zhou Kang and Zhang Junsen  
Key Wordsfirm origin agglomeration, institutional environment, export barriers, spatial statistics 
AbstractWhen we study the spatial distribution of firms, a difficult issue is that we have to distribute firms into specific administrative units, which transforms spatial spots (firm) into uneven black boxes (administrative units), and thus artificially distorts the attributes of agglomeration. To overcome this challenge, this paper uses a detailed coordinate dataset that allows us to construct simulations in continuous space and documents the existence of a novel pattern of agglomeration in China, namely, firms exporting to same destination tend to agglomerate in a relatively narrow region of China. To account for this phenomenon, we analyze typical facts and empirically exploit the effects of export barriers in shaping the agglomeration. We find that firms selling to countries with worse business regulations, different ideologies and languages from China tend to cluster significantly more in specific regions. These findings point to the possibility that destination-specific export barriers significantly affect firms’ site selection. Our work not only provides a novel technical explanation to the locational distribution of China's exporters, but also reveals a survival rule for exporters conquering tough export markets. 
Serial NumberWP1390 
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