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Identification of the most suitable areas for the development of headquarters economy in China: a theoretical framework and empirical case study

Author

Listed:
  • Yi Wang

    (Nanjing University of Science and Technology
    Industrial Cluster Decision-Making Consulting Research Base in Jiangsu)

  • Yingming Zhu

    (Nanjing University of Science and Technology
    Industrial Cluster Decision-Making Consulting Research Base in Jiangsu)

  • Maojun Yu

    (Anhui Institute of Economics)

Abstract

Headquarters economy is an advanced and complex economic form, and not all places possess the conditions to develop this type of economy. However, few studies have been devoted to evaluating and analyzing the suitability of a given region to develop headquarters economy, theoretically or empirically. In this study, a novel concept of “suitability of headquarters economy development” (SHED) was proposed, and a corresponding theoretical model and a four-level hierarchical indicator system were established. Besides, through an integration of the projection pursuit model, Pearson correlation, Theil index, and so on, we examine the regional inequality, spatial-temporal dynamic patterns and heterogeneity of the 19 urban agglomerations (UAs) in China from 2004 to 2018. The results showed that the SHED level of China’s UAs had been increasing since 2004, with an extending trend of regional differences. The Theil index value confirmed that the differences in SHED were mainly owing to variations among the three hierarchies. In addition, the SHED of China’s UAs exhibited significant dimensional heterogeneity, spatial heterogeneity, and hierarchical heterogeneity. According to the overall performance of China’s UAs, their SHED can be divided into five grades: high-speed advancing zone, rapidly advancing zone, steadily advancing zone, preliminarily advancing zone, and initially starting zone. The SHED level of many UAs mismatch the level of central cities under their jurisdiction, which needs to be treated differently. This study enriches the existing knowledge regarding headquarters economy and provides useful policy implications for the promotion of high-quality development of UAs in China and other developing countries in the future.

Suggested Citation

  • Yi Wang & Yingming Zhu & Maojun Yu, 2023. "Identification of the most suitable areas for the development of headquarters economy in China: a theoretical framework and empirical case study," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11487-11515, October.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:10:d:10.1007_s10668-022-02538-6
    DOI: 10.1007/s10668-022-02538-6
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