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From death to birth: Do logistics parks help local renewals in logistics industry?

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  • Fang, Jiawen
  • He, Canfei
  • Zhu, Shengjun

Abstract

In the era of E-commerce and globalization, the logistics industry has become a new driving force for local economic development, with government-led logistics parks planned and constructed as a powerful policy instrument. Skeptical about whether logistics parks really take effect as expected, this paper investigates the local process of creative destruction in the logistics industry, focusing on how government-led logistics parks bridge between firm exit and firm entry during industrial renewal. Using firm-level data of third-party logistics firms in China from 2003 to 2021 and adopting system GMM estimator method, we verify that previous exit contributes to future entry but varies by the firm type and the city's importance in the regional transport network. Furthermore, we find two major roles of government-led logistics parks: (1) accelerating this process by providing the platform where various resources can be reused and reorganized into high-quality new logistics firms; and (2) prioritizing the rebirths from local existing firms over arrivals from other cities, though with some level of local protectionism. Government policies and planning decisions should maintain such function without inhibiting regional market integration.

Suggested Citation

  • Fang, Jiawen & He, Canfei & Zhu, Shengjun, 2024. "From death to birth: Do logistics parks help local renewals in logistics industry?," Transport Policy, Elsevier, vol. 158(C), pages 148-158.
    • Handle: RePEc:eee:trapol:v:158:y:2024:i:c:p:148-158
    DOI: 10.1016/j.tranpol.2024.09.009
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