%0 Journal Article
%T How do Related and Unrelated Varieties Impact Firm Economic Growth in China: An Empirical Analysis with Endogeneity
%A Yuting Jiang
%J Advances in Applied Sociology
%P 269-293
%@ 2165-4336
%D 2024
%I Scientific Research Publishing
%R 10.4236/aasoci.2024.146019
%X Using a sample of 84,868 Chinese manufacturing firms operating in the period 2006-2013, we analyze whether related and unrelated variety¡ªmeasured by entropy method, affects firms¡¯ economic performance. Our results show that, with <a href=\"#ref28\">Heckman (1979)</a> two-step sample selection model correcting only for sample-selection bias, unrelated variety has a negative and statistically significant impact. If we also correct the endogeneity of the main explanatory variables¡ªrelated and unrelated variety, by employing <a href=\"#ref6\">Bartik¡¯s (1991)</a> shift-share approach, we find that they become insignificant. We find a positive effect for related variety and negative effect for unrelated variety only if we consider highly-developed Chinese regions. Finally, we find that related variety has a positive effect only in the case of large firms.
%K Agglomeration
%K Firm Economic Growth
%K Related and Unrelated Variety
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=133852