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Industrial agglomeration, urban characteristics, and economic growth quality: The case of knowledge-intensive business services

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  • Peng, Dan
  • Li, Rongrong
  • Shen, Chenrong
  • Wong, Zoey

Abstract

We discuss the relationship between knowledge-intensive business services (KIBS) agglomeration and the quality of urban economic growth using a general panel model and a spatial econometric model. Further, we investigate the mechanism for the effect of KIBS agglomeration on the quality of urban economic growth from the perspective of externalities. We find, first, that there is a significant positive relationship between KIBS spatial agglomeration and economic-growth quality. Further, KIBS spatial agglomeration has a spatial spillover effect on urban economic development. Second, there is a differential effect of KIBS spatial agglomeration on the quality of urban economic growth, influenced by factors such as place and time. Third, KIBS spatial agglomeration mainly enhances the quality of urban economic growth through Marshall–Arrow–Romer and Jacobs’ externalities.

Suggested Citation

  • Peng, Dan & Li, Rongrong & Shen, Chenrong & Wong, Zoey, 2022. "Industrial agglomeration, urban characteristics, and economic growth quality: The case of knowledge-intensive business services," International Review of Economics & Finance, Elsevier, vol. 81(C), pages 18-28.
    • Handle: RePEc:eee:reveco:v:81:y:2022:i:c:p:18-28
    DOI: 10.1016/j.iref.2022.05.001
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    5. Qi, Fengyu & Guo, Dong & Xu, Yaping & Liu, Xiaoxue & Liu, Pengzhen & Xie, Youzhi, 2024. "How does circulation industry agglomeration help close the income gap between urban and rural areas? — Evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).

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