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We examine the spillover effect of neighboring ports on regional industrialdiversification and their economic resilience using the export data of SouthKorea from 2006 to 2020. First, we build two distinct product spaces of portsand port regions, and provide direct estimates of the role of neighboring portsas spillover channels spatially linked. This is in contrast to the previousliterature that mainly regarded ports as transport infrastructure per se.Second, we confirm that the knowledge spillover effect from neighboring portshad a non-negligible role in sustaining regional economies during the recoveryafter the economic crisis but its power has weakened recently due to a loosenedglobal value chain.

The spillover effect of neighboring port on regional industrial diversification and regional economic resilience