IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i11p1955-d116712.html
   My bibliography  Save this article

Spatial–Temporal Modeling for Regional Economic Development: A Quantitative Analysis with Panel Data from Western China

Author

Listed:
  • Jingxiao Zhang

    (School of Economics and Management, Chang’an University, Middle-section of Nan’er Huan Road, Xi’an 710064, China)

  • Qiaoling Liu

    (School of Civil Engineering, Chang’an University, No.161, Chang’an Road, Xi’an 710061, China)

  • Chao Wang

    (Assistant Professor, Bert S. Turner Department of Construction Management, Louisiana State University, 3315D Patrick F. Taylor Hall, Baton Rouge, LA 70803, USA)

  • Hui Li

    (School of Civil Engineering, Chang’an University, No.161, Chang’an Road, Xi’an 710061, China)

Abstract

The objective of this research is to analyze regional economic difference and explore the influencing factors, which would eventually provide an effective foundation to narrow the regional economic differences. In this paper, a new regional economic difference model is established considering the interactions between the spatial weight and human capital and foreign direct investment (FDI). With the panel data from twelve western provinces in China, the empirical research is conducted by adopting feasible generalized least squares (FGLS) fixed effects model. The preliminary results show that: (1) the spatial spillover effect of human capital and FDI is significant to the formation of regional economic difference; and (2) the total capital formation, government expenditure, FDI, human capital and patent application authorization are positively correlated with GDP growth per capita, while the number of medical institutions is negatively correlated with GDP growth per capita. In addition, the robust test is carried out for validation by using the filter variable method, spatial lag model and spatial error model. The robustness test results show that the results of the FGLS fixed effects model are validated by the filter variable method. The other two robust test results show that: (1) the total capital formation and the fixed asset investment is of 99.9% significance, which represents that they play a key role in the formation of economic development difference; and (2) the coefficients’ symbols of the other variables are consistent with the FGLS fixed effect model but a little different on the significances, which enhance the effectiveness of the proposed regional economic difference model.

Suggested Citation

  • Jingxiao Zhang & Qiaoling Liu & Chao Wang & Hui Li, 2017. "Spatial–Temporal Modeling for Regional Economic Development: A Quantitative Analysis with Panel Data from Western China," Sustainability, MDPI, vol. 9(11), pages 1-25, October.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:1955-:d:116712
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/11/1955/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/11/1955/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fleisher, Belton & Li, Haizheng & Zhao, Min Qiang, 2010. "Human capital, economic growth, and regional inequality in China," Journal of Development Economics, Elsevier, vol. 92(2), pages 215-231, July.
    2. Gang Zhang, 2005. "Promoting IPR Policy and Enforcement in China: Summary of Dialogues between OECD and China," OECD Science, Technology and Industry Working Papers 2005/1, OECD Publishing.
    3. Shahid Yusuf & Kaoru Nabeshima, 2007. "How Universities Promote Economic Growth," World Bank Publications - Books, The World Bank Group, number 6631, December.
    4. Pooja Khosla, 2015. "Intra-Regional Trade In Africa And The Impact Of Chinese Intervention: A Gravity Model Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(4), pages 41-66, December.
    5. Yao, Xin & Guo, Chengwen & Shao, Shuai & Jiang, Zhujun, 2016. "Total-factor CO2 emission performance of China’s provincial industrial sector: A meta-frontier non-radial Malmquist index approach," Applied Energy, Elsevier, vol. 184(C), pages 1142-1153.
    6. Roberta Capello & Peter Nijkamp (ed.), 2009. "Handbook of Regional Growth and Development Theories," Books, Edward Elgar Publishing, number 12874.
    7. Riccardo Crescenzi & Marco Percoco (ed.), 2013. "Geography, Institutions and Regional Economic Performance," Advances in Spatial Science, Springer, edition 127, number 978-3-642-33395-8, Fall.
    8. Riccardo Crescenzi & Carlo Pietrobelli & Roberta Rabellotti, 2014. "Innovation drivers, value chains and the geography of multinational corporations in Europe," Journal of Economic Geography, Oxford University Press, vol. 14(6), pages 1053-1086.
    9. Xiaobo Wu & Yanbin Jiang, 2012. "Sectoral role change in transition China: a network analysis from 1990 to 2005," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2699-2715, July.
    10. Phillip Toner, 2011. "Workforce Skills and Innovation: An Overview of Major Themes in the Literature," OECD Education Working Papers 55, OECD Publishing.
    11. Adrian Smith, 1998. "Reconstructing the Regional Economy," Books, Edward Elgar Publishing, number 1322.
    12. Shahid Yusuf & Simon Evenett & Weiping Wu, 2001. "Facets of Globalization : International and Local Dimensions of Development," World Bank Publications - Books, The World Bank Group, number 14014, December.
    13. John Whalley & Xiliang Zhao, 2010. "The Contribution of Human Capital to China's Economic Growth," NBER Working Papers 16592, National Bureau of Economic Research, Inc.
    14. Xiaobo Wu & Yanbin Jiang, 2012. "Sectoral role change in transition China: a network analysis from 1990 to 2005," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2699-2715, July.
    15. Bulman,David J., 2016. "Incentivized Development in China," Cambridge Books, Cambridge University Press, number 9781107166295.
    16. Riccardo Crescenzi & Mara Giua, 2014. "The EU Cohesion policy in context: regional growth and the influence of agricultural and rural development policies," LEQS – LSE 'Europe in Question' Discussion Paper Series 85, European Institute, LSE.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yiheng Zhu & Shan Yang & Jinping Lin & Shanggang Yin, 2022. "Spatial and Temporal Evolutionary Characteristics and Its Influencing Factors of Economic Spatial Polarization in the Yangtze River Delta Region," IJERPH, MDPI, vol. 19(12), pages 1-20, June.
    2. Jun Zhang & Li Cheng, 2019. "Threshold Effect of Tourism Development on Economic Growth Following a Disaster Shock: Evidence from the Wenchuan Earthquake, P.R. China," Sustainability, MDPI, vol. 11(2), pages 1-22, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Huggins & Hiro Izushi, 2013. "Knowledge-based Development in Leading Regions across the Globe: An Exploratory Analysis of the co-Evolution of Resources, Capabilities and Outputs," Urban Studies, Urban Studies Journal Limited, vol. 50(5), pages 1030-1048, April.
    2. Burhan Can Karahasan, 2020. "Winners and losers of rapid growth in Turkey: Analysis of the spatial variability of convergence," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 603-644, June.
    3. Yao Zhao & Xuena Kong & Mahmood Ahmad & Zahoor Ahmed, 2023. "Digital Economy, Industrial Structure, and Environmental Quality: Assessing the Roles of Educational Investment, Green Innovation, and Economic Globalization," Sustainability, MDPI, vol. 15(3), pages 1-24, January.
    4. Jing Li & Tsun Se Cheong & Jianfa Shen & Dahai Fu, 2019. "Urbanization And Rural–Urban Consumption Disparity: Evidence From China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 983-996, September.
    5. Liu, Tie-Ying & Su, Chi-Wei, 2021. "Is transportation improving urbanization in China?," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    6. Zhen Yang & Weijun Gao, 2022. "Evaluating the Coordinated Development between Urban Greening and Economic Growth in Chinese Cities during 2005 to 2019," IJERPH, MDPI, vol. 19(15), pages 1-25, August.
    7. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    8. Xiaoxue Liu & Fuzhen Cao & Shuangshuang Fan, 2022. "Does Human Capital Matter for China’s Green Growth?—Examination Based on Econometric Model and Machine Learning Methods," IJERPH, MDPI, vol. 19(18), pages 1-27, September.
    9. Emran,M. Shahe & Sun,Yan - GSP05, 2015. "Are the children of uneducated farmers doubly disadvantaged ? farm, nonfarm and intergenerational educational mobility in rural China," Policy Research Working Paper Series 7459, The World Bank.
    10. Xi Zhang & Scott Rozelle, 2022. "Education Universalization, Rural School Participation, and Population Density," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 4-30, July.
    11. Baltagi, Badi H. & Feng, Qu & Kao, Chihwa, 2016. "Estimation of heterogeneous panels with structural breaks," Journal of Econometrics, Elsevier, vol. 191(1), pages 176-195.
    12. Peng Bin & Andrea Fracasso, 2017. "Regional Consumption Inequality in China: An Oaxaca-Blinder Decomposition at the Prefectural Level," Growth and Change, Wiley Blackwell, vol. 48(3), pages 459-486, September.
    13. Hrushikesh Mallick & Mantu Kumar Mahalik & Hemachandra Padhan, 2020. "Does globalization exacerbate income inequality in two largest emerging economies? The role of FDI and remittances inflows," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 67(4), pages 443-480, December.
    14. Wei-Bin Zhang, 2017. "Spatial Agglomeration And Economic Development With The Inclusion Of Interregional Tourism," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 62(213), pages 93-128, April - J.
    15. Yufeng Wang & Shijun Zhang & Luyao Zhang, 2023. "The Impact of Location-Based Tax Incentives and Carbon Emission Intensity: Evidence from China’s Western Development Strategy," IJERPH, MDPI, vol. 20(3), pages 1-23, February.
    16. Dong, Xiao-Ying & Hao, Yu, 2018. "Would income inequality affect electricity consumption? Evidence from China," Energy, Elsevier, vol. 142(C), pages 215-227.
    17. Tran, Nguyen Van & Alauddin, Mohammad & Tran, Quyet Van, 2019. "Labour quality and benefits reaped from global economic integration: An application of dynamic panel SGMM estimators," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 92-106.
    18. Heng Li & Shangguang Yang, 2023. "The Road to Common Prosperity: Can the Digital Countryside Construction Increase Household Income?," Sustainability, MDPI, vol. 15(5), pages 1-19, February.
    19. Valerio Mendoza, Octasiano Miguel & Borsi, Mihály Tamás & Comim, Flavio, 2022. "Human capital dynamics in China: Evidence from a club convergence approach," Journal of Asian Economics, Elsevier, vol. 79(C).
    20. Hanewald, Katja & Jia, Ruo & Liu, Zining, 2021. "Why is inequality higher among the old? Evidence from China," China Economic Review, Elsevier, vol. 66(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:11:p:1955-:d:116712. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.