University Agglomeration and Research Productivity: Evidence from Cross-City Branch Campus Expansion in China

• In Event: AERA Roundtable Session Friday 3:45 pm - Gold 1
  In Roundtable Session: International Issues in Organizational Culture

Abstract

University agglomeration is widely believed to enhance research and innovation, yet rigorous evidence of its causal impact remains limited due to endogeneity concerns. This paper exploits the establishment of cross-city branch campuses by top-tier universities in China as a natural experiment to identify how the entry of elite institutions affects local research performance. The results show that the arrival of these universities significantly increases the STEM research output of local universities in the host city. These gains are driven by improvements in research efficiency (TFP), greater collaboration with the incoming university, and higher-quality STEM researchers. These findings offer new insight into the dynamics of academic ecosystem development and the role of top-tier university in shaping regional knowledge hub.

Authors

• Yulian Cao, East China Normal University

• Ye Xiao, South China Normal University