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Producer services agglomeration and green growth: evidence from China

Author

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  • Wei Li

    (Central China Normal University)

  • Yingying Wang

    (Central China Normal University)

Abstract

A green economy pushes the transformation of the global economy into a new economic structure that aims for harmony between the economy and the environment. This study examines how the agglomeration of producer services affects green economy growth. The construction of an index system reveals significant regional and temporal evolution, as well as spatial auto-correlation characteristics for the green economy in China. The results of the spatial Durbin model effect decomposition indicate that diversified and competitive agglomerations of producer services have a positive direct impact on the green economy, whereas specialized agglomeration negatively affects it. Regarding indirect impacts, specialized agglomerations positively influence the green economy of the surrounding regions, whereas competitive agglomerations exacerbate the environmental burden on neighboring cities. These effects exhibit regional heterogeneity. Additionally, green innovation has a double threshold impact on the green economy and producer service agglomeration. The promotion of diversified and competitive agglomerations in the green economy steadily enlarges with an increase in the green innovation index. These findings provide a reference for formulating regional green transformation strategies.

Suggested Citation

  • Wei Li & Yingying Wang, 2024. "Producer services agglomeration and green growth: evidence from China," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-35, June.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:3:d:10.1007_s10644-024-09718-6
    DOI: 10.1007/s10644-024-09718-6
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