Can financial agglomeration weaken the role of logistics accessibility in promoting enterprise specialization? Evidence from Chinese manufacturing industry

Purpose This study explores whether and how financial agglomeration affects enterprise specialization, and whether it weakens the division effects of logistics accessibility. Design/methodology/approach Using the panel data of A-share listed companies in the Chinese manufacturing industry from 2010 to 2018, the authors test the hypotheses of the research framework by constructing a double fixed effect model. Findings First, for every 1% increase in financial agglomeration and logistics accessibility, enterprise specialization will increase by 1.8% and 5.6%. Meanwhile, financial agglomeration weakens the division effects of logistics accessibility. After a multiple robustness test, the above conclusions still hold. Second, the mechanism test shows that financial agglomeration can promote enterprise specialization through cost saving effect, scale expansion effect and technological progress effect. Third, financial agglomeration has a stronger positive impact and negative moderating effect on enterprise specialization in periphery areas and small-scale enterprises, but logistics accessibility is more likely to increase enterprise specialization in core regions and small-scale firms. Practical implications In the context of the global value chain (GVC) reshaping caused by the transformation of the international situation, exploring the relationship among financial agglomeration, logistics accessibility and enterprise specialization based on China’s experience can be an important insight for other emerging economies to enhance their position in the GVC. Originality/value The above findings enrich the literature on the division of labor among firms and contribute to the further improvement of GVC theory and division theory.