IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i4p986-d205933.html
   My bibliography  Save this article

Does Urban Industrial Agglomeration Lead to the Improvement of Land Use Efficiency in China? An Empirical Study from a Spatial Perspective

Author

Listed:
  • Wei Han

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    School of Resources & Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

  • Ying Zhang

    (School of Management, Minzu University of China, Beijing 100081, China)

  • Jianming Cai

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    School of Resources & Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

  • Enpu Ma

    (Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
    School of Resources & Environment, University of Chinese Academy of Sciences, Beijing 100049, China)

Abstract

Industrial agglomeration is an important economic phenomenon in urban areas and has significant effects on land use efficiency (LUE) due to external economies of scale. A bourgeoning body of literature has investigated the effects of industrial agglomeration. However, the relationship between industrial agglomeration and land use efficiency has rarely been discussed in China. To fill this gap, this study aims to explore the effects of industrial agglomeration on LUE and the characteristics of its spatial distribution. In this study, the spatial effects of industrial agglomeration of 12 detailed sectors on LUE are estimated through the geographical weighted regression model. Socioeconomic data of 289 prefecture-level cities in China are utilized for the analysis. Results show several important findings. First, spatial effects of industrial agglomerations on LUE are evident in three grand city clusters, i.e. the Beijing–Tianjin–Hebei Region, the Yangtze River Delta, and the Pearl River Delta. Second, spatial patterns and distributions of industrial agglomeration effects on LUE vary across regions. Third, the significance of industrial agglomeration effects on LUE between 2-digit industrial sectors is different. The merits of this study lie in three aspects: First, a theoretical framework is explored to analyze the impacts of industrial agglomeration on LUE based on the expanded Cobb–Douglas production function; Second, the impacts of industrial sectors on LUE are estimated from a spatial perspective; Third, some policy implications for a more economically efficient urban spatial development are suggested.

Suggested Citation

  • Wei Han & Ying Zhang & Jianming Cai & Enpu Ma, 2019. "Does Urban Industrial Agglomeration Lead to the Improvement of Land Use Efficiency in China? An Empirical Study from a Spatial Perspective," Sustainability, MDPI, vol. 11(4), pages 1-22, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:4:p:986-:d:205933
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/4/986/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/4/986/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xie, Hualin & Chen, Qianru & Lu, Fucai & Wu, Qing & Wang, Wei, 2018. "Spatial-temporal disparities, saving potential and influential factors of industrial land use efficiency: A case study in urban agglomeration in the middle reaches of the Yangtze River," Land Use Policy, Elsevier, vol. 75(C), pages 518-529.
    2. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, vol. 46(2), pages 213-227, February.
    3. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    4. Zhang, Qian & Sun, Zhongxiao & Huang, Wei, 2018. "Does land perform well for corn planting? An empirical study on land use efficiency in China," Land Use Policy, Elsevier, vol. 74(C), pages 273-280.
    5. Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2011. "Spatial concentration and plant-level productivity in France," Journal of Urban Economics, Elsevier, vol. 69(2), pages 182-195, March.
    6. Luis Cabral & Zhu Wang & Daniel Yi Xu, 2018. "Competitor, Complementors, Parents and Places: Explaining Regional Agglomeration in the U.S. Auto Industry," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 30, pages 1-29, October.
    7. repec:hal:wpspec:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc6ihim is not listed on IDEAS
    8. Cécile Batisse, 2002. "Dynamic externalities and local growth," Post-Print hal-02139698, HAL.
    9. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    10. Cerina, Fabio & Mureddu, Francesco, 2014. "Is agglomeration really good for growth? Global efficiency, interregional equity and uneven growth," Journal of Urban Economics, Elsevier, vol. 84(C), pages 9-22.
    11. Miller, Stephen M. & Upadhyay, Mukti P., 2000. "The effects of openness, trade orientation, and human capital on total factor productivity," Journal of Development Economics, Elsevier, vol. 63(2), pages 399-423, December.
    12. C. Cindy Fan & Allen J. Scott, 2003. "Industrial Agglomeration and Development: A Survey of Spatial Economic Issues in East Asia and a Statistical Analysis of Chinese Regions," Economic Geography, Taylor & Francis Journals, vol. 79(3), pages 295-319, July.
    13. Liang, Jiaochen & Goetz, Stephan J., 2018. "Technology intensity and agglomeration economies," Research Policy, Elsevier, vol. 47(10), pages 1990-1995.
    14. Zhao, Zhe & Bai, Yuping & Wang, Guofeng & Chen, Jiancheng & Yu, Jiangli & Liu, Wei, 2018. "Land eco-efficiency for new-type urbanization in the Beijing-Tianjin-Hebei Region," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 19-26.
    15. Brülhart, Marius & Mathys, Nicole A., 2008. "Sectoral agglomeration economies in a panel of European regions," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 348-362, July.
    16. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    17. Yu, Qiangyi & Wu, Wenbin & Verburg, Peter H. & van Vliet, Jasper & Yang, Peng & Zhou, Qingbo & Tang, Huajun, 2013. "A survey-based exploration of land-system dynamics in an agricultural region of Northeast China," Agricultural Systems, Elsevier, vol. 121(C), pages 106-116.
    18. Liu, Fa & Sun, Fubao & Liu, Wenbin & Wang, Tingting & Wang, Hong & Wang, Xunming & Lim, Wee Ho, 2019. "On wind speed pattern and energy potential in China," Applied Energy, Elsevier, vol. 236(C), pages 867-876.
    19. ZHANG, Hongyong, 2015. "How does agglomeration promote the product innovation of Chinese firms?," China Economic Review, Elsevier, vol. 35(C), pages 105-120.
    20. Swann, Peter & Prevezer, Martha, 1996. "A comparison of the dynamics of industrial clustering in computing and biotechnology," Research Policy, Elsevier, vol. 25(7), pages 1139-1157, October.
    21. HE Canfei & ZHU Shengjun, 2007. "Economic Transition and Industrial Restructuring in China: Structural Convergence or Divergence?," Post-Communist Economies, Taylor & Francis Journals, vol. 19(3), pages 317-342.
    22. Shanzi Ke, 2010. "Agglomeration, productivity, and spatial spillovers across Chinese cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 157-179, August.
    23. Federico Cingano & Fabiano Schivardi, 2004. "Identifying the Sources of Local Productivity Growth," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 720-742, June.
    24. Batisse, Cecile, 2002. "Dynamic externalities and local growth: A panel data analysis applied to Chinese provinces," China Economic Review, Elsevier, vol. 13(2-3), pages 231-251.
    25. Fafchamps, Marcel & Hamine, Said El, 2017. "Firm productivity, wages, and agglomeration externalities," Research in Economics, Elsevier, vol. 71(2), pages 291-305.
    26. Brunello, Giorgio & Langella, Monica, 2016. "Local agglomeration, entrepreneurship and the 2008 recession: Evidence from Italian industrial districts," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 104-114.
    27. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    28. Cheng, Chuntian & Chen, Fu & Li, Gang & Ristić, Bora & Mirchi, Ali & Qiyu, Tu & Madani, Kaveh, 2018. "Reform and renewables in China: The architecture of Yunnan's hydropower dominated electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 682-693.
    29. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8mc6ihim is not listed on IDEAS
    30. Khaled Thabet, 2015. "Industrial structure and total factor productivity: the Tunisian manufacturing sector between 1998 and 2004," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 639-662, March.
    31. Nadiri, M. Ishaq & Nandi, Banani & Akoz, Kemal Kivanc, 2018. "Impact of modern communication infrastructure on productivity, production structure and factor demands of US industries: Impact revisited," Telecommunications Policy, Elsevier, vol. 42(6), pages 433-451.
    32. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 405-431, April.
    33. Daniel Graham & H. Kim, 2008. "An empirical analytical framework for agglomeration economies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 267-289, June.
    34. W, Y, 1995. "Productivity Growth, Technological Progress, and Technical Efficiency Change in China: A Three-Sector Analysis1," Journal of Comparative Economics, Elsevier, vol. 21(2), pages 207-229, October.
    35. Azari, Mehdi & Kim, Hakkon & Kim, Jun Yeup & Ryu, Doojin, 2016. "The effect of agglomeration on the productivity of urban manufacturing sectors in a leading emerging economy," Economic Systems, Elsevier, vol. 40(3), pages 422-432.
    36. Han, Feng & Xie, Rui & Fang, Jiayu, 2018. "Urban agglomeration economies and industrial energy efficiency," Energy, Elsevier, vol. 162(C), pages 45-59.
    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. Xinhai Lu & Yifeng Tang & Shangan Ke, 2021. "Does the Construction and Operation of High-Speed Rail Improve Urban Land Use Efficiency? Evidence from China," Land, MDPI, vol. 10(3), pages 1-15, March.
    2. Sun, Yifan & Ma, Anbing & Su, Haorui & Su, Shiliang & Chen, Fei & Wang, Wen & Weng, Min, 2020. "Does the establishment of development zones really improve industrial land use efficiency? Implications for China’s high-quality development policy," Land Use Policy, Elsevier, vol. 90(C).
    3. Kun Ge & Shan Zou & Xinhai Lu & Shangan Ke & Danling Chen & Zhangsheng Liu, 2022. "Dynamic Evolution and the Mechanism behind the Coupling Coordination Relationship between Industrial Integration and Urban Land-Use Efficiency: A Case Study of the Yangtze River Economic Zone in China," Land, MDPI, vol. 11(2), pages 1-22, February.
    4. Hangang Hu & Lisha Pan & Xin Jing & Guan Li & Yuefei Zhuo & Zhongguo Xu & Yang Chen & Xueqi Wang, 2022. "The Spatiotemporal Non-Stationary Effect of Industrial Agglomeration on Urban Land Use Efficiency: A Case Study of Yangtze River Delta, China," Land, MDPI, vol. 11(5), pages 1-27, May.
    5. Zhang, Lin & He, Xiaoxia & Jia, Zhenli, 2023. "Industrial agglomeration, public services and city size: Evidence from 286 cities in China," Land Use Policy, Elsevier, vol. 131(C).
    6. Tingzhu Li & Ran Liu & Wei Qi, 2019. "Regional Heterogeneity of Migrant Rent Affordability Stress in Urban China: A Comparison between Skilled and Unskilled Migrants at Prefecture Level and Above," Sustainability, MDPI, vol. 11(21), pages 1-26, October.
    7. Hengran Bian & Yi Liu, 2023. "A Deep Graph Learning-Enhanced Assessment Method for Industry-Sustainability Coupling Degree in Smart Cities," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    8. Devesh Singh, 2022. "Cluster Space Among Labor Productivity, Urbanization, and Agglomeration of Industries in Hungary," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1008-1027, June.
    9. Mei Song & Yujin Gao & Furong Dong & Yunan Feng, 2023. "Research on the Spatial Spillover Effect of Industrial Agglomeration on the Economic Growth in the Yellow River Basin," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    10. Yuan Wang & Anlu Zhang & Min Min & Ke Zhao & Weiyan Hu & Fude Qin, 2023. "Research on the Effect of Manufacturing Agglomeration on Green Use Efficiency of Industrial Land," IJERPH, MDPI, vol. 20(2), pages 1-18, January.
    11. Lili Yang & Jian Wang & Yuhao Feng & Qun Wu, 2022. "The Impact of the Regional Differentiation of Land Supply on Total Factor Productivity in China: From the Perspective of Total Factor Productivity Decomposition," Land, MDPI, vol. 11(10), pages 1-17, October.
    12. Qian Wang & Yanan Wang & Wei Chen & Xue Zhou & Minjuan Zhao, 2021. "Factors affecting industrial land use efficiency in China: analysis from government and land market," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(7), pages 10973-10993, July.
    13. Yihui Chen & Minjie Li & Assem Abu Hatab, 2020. "A spatiotemporal analysis of comparative advantage in tea production in China," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(12), pages 550-561.
    14. Batara Surya & Agus Salim & Hernita Hernita & Seri Suriani & Firman Menne & Emil Salim Rasyidi, 2021. "Land Use Change, Urban Agglomeration, and Urban Sprawl: A Sustainable Development Perspective of Makassar City, Indonesia," Land, MDPI, vol. 10(6), pages 1-31, May.

    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. Khaled Thabet, 2015. "Industrial structure and total factor productivity: the Tunisian manufacturing sector between 1998 and 2004," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(2), pages 639-662, March.
    2. SHARMA Anand, 2017. "Dynamic Externalities And Regional Manufacturing Growth: Evidence From India," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(1), pages 185-201, April.
    3. Mohamed Amara, 2019. "Firm Performance and Agglomeration Effects: Evidence from Tunisian Firm-level Data," Working Papers 1297, Economic Research Forum, revised 2019.
    4. Mohamed Amara & Khaled Thabet, 2019. "Firm and regional factors of productivity: a multilevel analysis of Tunisian manufacturing," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 25-51, August.
    5. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    6. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    7. Rita Almeida & Ana M. Fernandes, 2013. "Explaining local manufacturing growth in Chile: the advantages of sectoral diversity," Applied Economics, Taylor & Francis Journals, vol. 45(16), pages 2201-2213, June.
    8. Han, Feng & Xie, Rui & Fang, Jiayu, 2018. "Urban agglomeration economies and industrial energy efficiency," Energy, Elsevier, vol. 162(C), pages 45-59.
    9. Graham, Daniel J. & Gibbons, Stephen, 2019. "Quantifying Wider Economic Impacts of agglomeration for transport appraisal: Existing evidence and future directions," Economics of Transportation, Elsevier, vol. 19(C), pages 1-1.
    10. Neng Shen & Yuqing Zhao & Qunwei Wang, 2018. "Diversified Agglomeration, Specialized Agglomeration, and Emission Reduction Effect—A Nonlinear Test Based on Chinese City Data," Sustainability, MDPI, vol. 10(6), pages 1-22, June.
    11. Mohamed Amara & AbdelRahmen El Lahga, 2015. "A note on MAR and Jacobs externalities in the Tunisian manufacturing industries," Letters in Spatial and Resource Sciences, Springer, vol. 8(2), pages 151-167, July.
    12. Giulio Cainelli & Roberto Ganau & Donato Iacobucci, 2016. "Do Geographic Concentration and Vertically Related Variety Foster Firm Productivity? Micro-Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 47(2), pages 197-217, June.
    13. Zahra Dehghan Shabani & Rouhollah Shahnazi, 2017. "The Short and Long Run Causality between Agglomeration and Productivity," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(2), pages 363-385, Spring.
    14. Wei, Wei & Zhang, Wan-Li & Wen, Jun & Wang, Jun-Sheng, 2020. "TFP growth in Chinese cities: The role of factor-intensity and industrial agglomeration," Economic Modelling, Elsevier, vol. 91(C), pages 534-549.
    15. Timo Mitze & Teemu Makkonen, 2020. "When interaction matters: the contingent effects of spatial knowledge spillovers and internal R&I on firm productivity," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1088-1120, August.
    16. repec:ctc:sdimse:dime19_03 is not listed on IDEAS
    17. Juliette Milgram-Baleix, 2009. "Do Spanish firms learn from firms located nearby?," Economic Working Papers at Centro de Estudios Andaluces E2009/09, Centro de Estudios Andaluces.
    18. Carlos Carreira & Luís Lopes, 2015. "Are Small Firms More Dependent on the Local Environment than Larger Firms? Evidence from Portuguese Manufacturing Firms," International Studies in Entrepreneurship, in: Rui Baptista & João Leitão (ed.), Entrepreneurship, Human Capital, and Regional Development, edition 127, chapter 0, pages 263-280, Springer.
    19. Ricardo A. López & Jens Südekum, 2009. "Vertical Industry Relations, Spillovers, And Productivity: Evidence From Chilean Plants," Journal of Regional Science, Wiley Blackwell, vol. 49(4), pages 721-747, October.
    20. ZHAO Ting & ZHAO Wei, 2012. "Dynamic Externalities and Manufacturing Productivity: An empirical comparison among China's top three municipalities," Discussion papers 12072, Research Institute of Economy, Trade and Industry (RIETI).
    21. Hoang, Manh Cuong & Schiller, Daniel, 2023. "Which firms benefit the most from agglomeration? New evidence from an emerging country with consistent measure of productivity," Journal of Asian Economics, Elsevier, vol. 86(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:11:y:2019:i:4:p:986-:d:205933. 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.