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ID: 147444

Effects of factor proximity and market potential on urban manufacturing output / Han, Feng; Ke, Shanzi

Han, Feng	Journal Article
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Summary/Abstract

This paper derives a NEG-style model that outlines several spatial spillover channels and examines the effects of proximities to spatially distributed factor supply and market demand on Chinese urban economies. A panel dataset of 283 prefecture or higher-level cities from 2003–2013 is used for the empirical analysis. The estimation shows that proximities to government expenditure on science and technology, to professionals in science and technology, and to the domestic and foreign markets all contribute to urban manufacturing growth, while concentrations of specialized labor force and producer services in neighboring cities have negative effects. The spatial effects of factor proximities and market potentials differ in China's three regions. Surprisingly, cities in the central region have the most significant gain from spillovers of factor supply, and cities in the eastern and western regions benefit substantially from the domestic and foreign markets. Policy implications are derived from the findings.

Key Words

Chinese Cities ; Spatial Effects ; Market Potential ; Factor Agglomeration ; Urban Economies

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ID: 100754

Spatial externalities in China regional economic growth / Tian, Lei; Wang, H Holly; Chen, Yongjun

Tian, Lei	Journal Article
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2010.

Summary/Abstract

Using spatial econometric techniques, this paper presents an empirical analysis of the growth performances of Chinese prefectures over 1991 to 2007 period. Based on the Solow growth theory with technology spillovers, a Spatial Durbin growth model recently developed is employed to capture the spatial externalities. We find strong evidence of positive spatial dependence between Chinese prefectures after 1991. Apart from the usual divergence conclusions, we find evidence for significant conditional convergence force when the spatial spillover effects are controlled. Our results also indicate the competition effect of capital accumulation and urbanization growth among neighboring regions. Moreover, spatial convergence clubs are detected and the spatial interactions and growth behavior varies.

Key Words

Convergence ; Technology Externalities ; Spatial Effects

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