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Diversification, vertical integration and economic resilience: evidence from intercity truck flows during COVID-19 in China

Author

Listed:
  • Da Fang
  • Yan Guo
  • Haochen Zhang

Abstract

This article examines economic resilience by combining high-frequency truck flows and the lockdown policy shock during COVID-19 in China. We discover that the truck flows in regions with higher levels of diversification and vertical integration see a smaller decrease in response to the COVID-19 shock. Dynamically, such moderating effects of diversification and vertical integration get smaller with the recovery of interregional economic linkages. Diversification and integration also mitigate the negative impact from nonlocal infection cases. The association between the industrial structure attributes and economic resilience is more prominent in regions with lower centrality in the nationwide intercity truck flow network.

Suggested Citation

  • Da Fang & Yan Guo & Haochen Zhang, 2023. "Diversification, vertical integration and economic resilience: evidence from intercity truck flows during COVID-19 in China," Journal of Economic Geography, Oxford University Press, vol. 23(6), pages 1345-1370.
    • Handle: RePEc:oup:jecgeo:v:23:y:2023:i:6:p:1345-1370.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbad022
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    More about this item

    Keywords

    COVID-19; diversification; economic resilience; industrial structure; network; truck flow; vertical integration;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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