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Spatial spillover and regional economic growth in China

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  • Bai, Chong-En
  • Ma, Hong
  • Pan, Wenqing

Abstract

This paper investigates the spatial structure of the provincial economic growth and the spatial spillover in China from 1998 to 2008. First, we apply Moran's index to detect the positive spatial autocorrelations across the provinces of China. Second, we build a new economic geography model and the role of market potential in promoting regional income growth is highlighted. Third, two measures of market potential are constructed and a spatial error model is adopted to obtain the estimations, considering spatial autocorrelation. Controlling for major inputs, such as labor, capital, and human capital, the market potential continues to promote substantial regional growth. On average, an increase of 10 percentage points in the market potential increases the regional GDP per capita growth by 3–5 percentage points.

Suggested Citation

  • Bai, Chong-En & Ma, Hong & Pan, Wenqing, 2012. "Spatial spillover and regional economic growth in China," China Economic Review, Elsevier, vol. 23(4), pages 982-990.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:4:p:982-990
    DOI: 10.1016/j.chieco.2012.04.016
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    References listed on IDEAS

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    Cited by:

    1. C. Duvivier & S. Li & M.-F. Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4308-4322, October.
    2. Bulent Esiyok & Mehmet Ugur, 2018. "Spatial dependence in the growth process and implications for convergence rate: evidence on Vietnamese provinces," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(1), pages 51-65, January.
    3. Ming-Chieh Wang & Tai-Feng Chen, 2016. "Does the spillover of China's economic growth exist? Evidence from emerging markets," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 25(7), pages 992-1009, October.
    4. Zhaohui Chong & Chenglin Qin & Xinyue Ye, 2016. "Environmental Regulation, Economic Network and Sustainable Growth of Urban Agglomerations in China," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-21, May.
    5. repec:gam:jsusta:v:8:y:2016:i:5:p:467:d:69798 is not listed on IDEAS
    6. International Monetary Fund, 2015. "Republic of Estonia; Selected Issues," IMF Staff Country Reports 15/337, International Monetary Fund.
    7. Aleh Mazol, 2016. "Spatial wage inequality in Belarus," BEROC Working Paper Series 35, Belarusian Economic Research and Outreach Center (BEROC).
    8. Huang, Qiong & Chand, Satish, 2015. "Spatial spillovers of regional wages: Evidence from Chinese provinces," China Economic Review, Elsevier, vol. 32(C), pages 97-109.
    9. Zhang, Youguo, 2017. "Interregional carbon emission spillover–feedback effects in China," Energy Policy, Elsevier, vol. 100(C), pages 138-148.
    10. Weiwei Liu & Xiandong Xu & Zhile Yang & Jianyu Zhao & Jing Xing, 2016. "Impacts of FDI Renewable Energy Technology Spillover on China’s Energy Industry Performance," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-16, August.
    11. Romain Houssa & Kelbesa Megersa, 2017. "Institutional quality, economic development and the performance of VAT," BeFinD Working Papers 0115, University of Namur, Department of Economics.
    12. Hong, Tao & Ma, Tao & Huan, Tzung-Cheng (T.C.), 2015. "Network behavior as driving forces for tourism flows," Journal of Business Research, Elsevier, vol. 68(1), pages 146-156.
    13. Zhang, Lin, 2017. "The knowledge spillover effects of FDI on the productivity and efficiency of research activities in China," China Economic Review, Elsevier, vol. 42(C), pages 1-14.

    More about this item

    Keywords

    Spatial spillover; Regional economic growth; Market potential;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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