Related Variety and Exporting on a Firm's Labor Productivity in Pollution-Intensive Industries in China

This study investigates the influence of regional industrial variety and export activities on labor productivity in China's pollution-intensive manufacturing sectors from 2003 to 2009. Analyzing data from 345,654 firms, we discover that regional related variety significantly boosts labor productivity. Moreover, this study reveals that firms with a higher export ratio experience an amplified benefit from the related variety on labor productivity. Our findings suggest the need for comprehensive policies that balance economic growth with environmental sustainability, emphasizing the nuanced role of industrial variety and global market integration in shaping productive efficiency.