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Polycentric agglomeration, market integration and green economic efficiency

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  • Chen, Xu
  • Chen, Xueli
  • Song, Malin

Abstract

The green economy is particularly important in China's pursuit of high-quality economic growth. Adopting China's provincial balance panel data from 2000 to 2017, this article attempts to reveal the impact of polycentric agglomeration on green total factor productivity, its action path, and the synergistic effect of market integration by employing instrumental variable estimation and a mediating effect model. A significant inverted U-shaped relationship is found between polycentric agglomeration and green total factor productivity, and the polycentric agglomeration in most provinces has not exceeded the inflection point. Furthermore, the mediating effect shows that functional urban specialization and technological innovation are effective paths through which polycentric agglomeration enhances green total factor productivity. Finally, market integration contributes to green total factor productivity, and a significant positive synergistic effect exists between market integration and polycentric agglomeration. Therefore, this paper argues that China should continue to develop polycentric agglomeration and accelerate the process of market integration to promote green economic efficiency.

Suggested Citation

  • Chen, Xu & Chen, Xueli & Song, Malin, 2021. "Polycentric agglomeration, market integration and green economic efficiency," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 185-197.
    • Handle: RePEc:eee:streco:v:59:y:2021:i:c:p:185-197
    DOI: 10.1016/j.strueco.2021.08.016
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