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Can industrial agglomeration improve regional green total factor productivity in China? An empirical analysis based on spatial econometrics

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  • Ping Lu
  • Jianhui Liu
  • Yunxuan Wang
  • Lei Ruan

Abstract

Resource depletion and environmental pollution have seriously restricted the sustainable development of China's economy in recent years. How to transform the extensive growth mode to the intensive growth mode and realize the green development of economy is a great challenge for China. In this paper, we use the non‐radial and non‐angle Slack‐based Model (SBM) considering the undesired output, combined with the Malmquist–Luenberger productivity index, to measure regional green total factor productivity (GTFP). By constructing the green output density function, the theoretical model of the relationship between regional GTFP and industrial agglomeration is deduced, and the theoretical mechanism of the influence of industrial agglomeration on regional GTFP is analyzed. Based on panel data of 243 cities at the prefecture level in China from 2010 to 2019, this article employs the dynamic spatial panel model to empirically estimate the impact of industrial agglomeration on regional GTFP. The empirical results show that regional GTFP shows significant spatial autocorrelation and spatial clustering characteristics. The manufacturing agglomeration has significant negative impact on regional GTFP and produces negative spatial spillover effect on the surrounding regions, but does not produce congestion effect. The producer services agglomeration significantly improves regional GTFP and produces positive spatial spillover effect on the surrounding regions, and leads to congestion effect. The co‐agglomeration of producer services and manufacturing has significantly promoted the improvement of regional GTFP and produces positive spatial spillover effect on the surrounding regions. Finally, this article puts forward policy suggestions on how to promote regional GTFP and achieve green development from the perspective of industrial agglomeration.

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  • Ping Lu & Jianhui Liu & Yunxuan Wang & Lei Ruan, 2021. "Can industrial agglomeration improve regional green total factor productivity in China? An empirical analysis based on spatial econometrics," Growth and Change, Wiley Blackwell, vol. 52(2), pages 1011-1039, June.
    • Handle: RePEc:bla:growch:v:52:y:2021:i:2:p:1011-1039
    DOI: 10.1111/grow.12488
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    4. Siliang Guo & Heng Ma, 2021. "Does industrial agglomeration promote high‐quality development of the Yellow River Basin in China? Empirical test from the moderating effect of environmental regulation," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2040-2070, December.
    5. Nana Yang & Qiming Liu, 2023. "How does industrial agglomeration affect regional innovation? A spatial econometric analysis," Growth and Change, Wiley Blackwell, vol. 54(4), pages 826-852, December.
    6. Wang, Yafei & Bai, Ying & Quan, Tianshu & Ran, Rong & Hua, Lei, 2023. "Influence and effect of industrial agglomeration on urban green total factor productivity—On the regulatory role of innovation agglomeration and institutional distance," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1158-1173.
    7. Wang, Miao & Wu, Yi & Zhang, Xinmin & Lei, Lei, 2024. "How does industrial agglomeration affect internal structures of green economy in China? An analysis based on a three-hierarchy meta-frontier DEA and systematic GMM approach," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    8. Lingyan Xu & Dandan Wang & Jianguo Du, 2021. "The Heterogeneous Influence of Infrastructure Construction on China’s Urban Green and Smart Development—The Threshold Effect of Urban Scale," Land, MDPI, vol. 10(10), pages 1-17, September.
    9. Wang, Jianda & Guo, Dongsheng, 2023. "Siphon and radiation effects of ICT agglomeration on green total factor productivity: Evidence from a spatial Durbin model," Energy Economics, Elsevier, vol. 126(C).
    10. Du, Congcong & Cao, Yunhui & Ling, Yushan & Jin, Zebin & Wang, Shibo & Wang, Daoping, 2024. "Does manufacturing agglomeration promote green productivity growth in China? Fresh evidence from partially linear functional-coefficient models," Energy Economics, Elsevier, vol. 131(C).
    11. Kai Chang & Huijia Zhang & Boyang Li, 2024. "The Impact of Digital Economy and Industrial Agglomeration on the Changes of Industrial Structure in the Yangtze River Delta," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 9207-9227, June.
    12. Xiaoxuan Li & Ying Liu, 2024. "The Economic Spillover Effect of the Collaborative Agglomeration between Manufacturing and Producer Services," Sustainability, MDPI, vol. 16(13), pages 1-19, June.
    13. Ziyan Zheng & Yingming Zhu & Yu Pei & Litao Wang, 2023. "Spatial–temporal heterogeneity and influencing factors of the coupling between industrial agglomeration and regional economic resilience in China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12735-12759, November.
    14. Yongquan Zhao & Ziwei Zhang, 2023. "Distribution of Spatial and Temporal Heterogeneity of Green Total-Factor Productivity in the Chinese Manufacturing Industry, and the Influencing Factors," Sustainability, MDPI, vol. 15(4), pages 1-15, February.
    15. Pan, Haozhi & Sun, Yanhao & Wang, Manheng & Dong, Zian & Wang, Zhen & Zhang, Yina & Zhang, Xiaoling, 2024. "Rising from the ashes: Transitioning towards carbon neutrality through the pathways of circular economy agglomeration," Ecological Economics, Elsevier, vol. 219(C).
    16. Yinyin Wen & Min Zhao & Genli Tang & Xiaoxiao Zhou & Xingchen Hu & Li Sui, 2023. "How does financial agglomeration affect green development? Evidence from the Yangtze River Delta of China," Growth and Change, Wiley Blackwell, vol. 54(1), pages 135-156, March.
    17. Jingxing Zhang, 2022. "Impact of Manufacturing Servitization on Factor Productivity of Industrial Sector Using Global Value Chain," Sustainability, MDPI, vol. 14(9), pages 1-15, April.
    18. Hongxia Xu & Ning Xu, 2024. "Industrial Co-Agglomeration and Urban Green Total Factor Productivity: Multidimensional Mechanism and Spatial Effect," Sustainability, MDPI, vol. 16(21), pages 1-23, October.

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