@techreport{2da8c2fe08b84d7f9f866141ef5ca31b,
title = "Industrial clusters in the long run: evidence from Million-Rouble plants in China",
abstract = "We identify the negative spillovers exerted by large, successful factories on other local production units in China. A short-lived cooperation program between the U.S.S.R. and China led to the construction of 156 \Million-Rouble plants{"} in the 1950s. The identication exploits the ephemeral geopolitical context and exogenous variation in location decisions due to the relative position of allied and enemy airbases. We nd a rise-and-fall pattern in counties hosting a factory and show that (over-) specialization explains their long-run decline. The analysis of production linkages shows that a very large cluster of non-innovative establishments enjoy technological rents along the production chain of Million-Rouble plants. This industrial concentration reduces the local supply of entrepreneurs.",
keywords = "industrial clusters, Agglomeration economies, specialization",
author = "Stephan Heblich and Marlon Seror and Hao Xu and Yanos Zylberberg",
year = "2020",
month = jan,
day = "24",
language = "English",
series = "University of Bristol Working Paper Series",
publisher = "University of Bristol",
type = "WorkingPaper",
institution = "University of Bristol",
}