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Productivity growth in Chinese cities: The agglomeration effect for cross-regional industrial structures

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  • Yuanjun GE

    (Wenzhou-Kean University, China)

  • Fa-Hsiang CHANG

    (Wenzhou-Kean University, China)

Abstract

Since industrial development patterns in China are different across regions and sectors, this paper firstly estimates total factor productivity growth rate through two-stage-least-square method and then investigates the effect of agglomeration in city-industry productivity growth for 7 sectors located in 101 Chinese cities over period 2005-2013, with consideration of cross-regional effect such as knowledge spillovers between regions. Our results indicate there is no significant effect of agglomeration on city-industry TFP if the impact of cross-regional effect on agglomeration are taken into considerations. From spatial Durbin model (SDM), cross-regional effect significantly inhibits the city-industry TFP growth resulted from diversification.

Suggested Citation

  • Yuanjun GE & Fa-Hsiang CHANG, 2021. "Productivity growth in Chinese cities: The agglomeration effect for cross-regional industrial structures," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(629), W), pages 91-104, Winter.
    • Handle: RePEc:agr:journl:v:4(629):y:2021:i:4(629):p:91-104
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    References listed on IDEAS

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