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Market Integration and Regional Green Total Factor Productivity: Evidence from China’s Province-Level Data

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  • Shiying Hou

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Liangrong Song

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

Abstract

The development of market integration has an important effect on regional green total factor productivity (GTFP). Based on the panel data of 30 provinces in China from 2008 to 2017, this paper studies the spatial effect and transmission mechanism of market integration on regional green total factor productivity by calculating the Malmquist–Luenburger index and using spatial econometric models. It was found that market integration can promote the improvement of regional green total factor productivity. This positive effect is not only directly reflected in the region, it also indirectly promotes the growth of GTFP in nearby regions. In addition, market integration has shown significant positive effects on efficiency improvement and technological progress, and market integration has affected regional green total factor productivity through them. The above conclusions are of great significance for China to develop a green economy and promote high-quality economic transformation.

Suggested Citation

  • Shiying Hou & Liangrong Song, 2021. "Market Integration and Regional Green Total Factor Productivity: Evidence from China’s Province-Level Data," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:2:p:472-:d:475580
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    References listed on IDEAS

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    5. Xie, Rui & Fu, Wei & Yao, Siling & Zhang, Qi, 2021. "Effects of financial agglomeration on green total factor productivity in Chinese cities: Insights from an empirical spatial Durbin model," Energy Economics, Elsevier, vol. 101(C).
    6. Yanhong Liu & Jia Lei & Yihua Zhang, 2021. "A Study on the Sustainable Relationship among the Green Finance, Environment Regulation and Green-Total-Factor Productivity in China," Sustainability, MDPI, vol. 13(21), pages 1-27, October.
    7. Can Cheng & Xiuwen Yu & Heng Hu & Zitian Su & Shangfeng Zhang, 2022. "Measurement of China’s Green Total Factor Productivity Introducing Human Capital Composition," IJERPH, MDPI, vol. 19(20), pages 1-19, October.
    8. Chuan Li & Liangrong Song, 2022. "Regional Differences and Spatial Convergence of Green Development in China," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    9. Haoran Yang & Yaoben Lin & Yang Hu & Xueqing Liu & Qun Wu, 2022. "Influence Mechanism of Industrial Agglomeration and Technological Innovation on Land Granting on Green Total Factor Productivity," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
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