IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i6p2628-d1613681.html

Research on the Impact and Mechanism of Modernized Industry-City Integration on the Size of the Local Market

Author

Listed:
  • Zhe Liu

    (College of Economics and Management, Shenyang Ligong University, Shenyang 110100, China)

  • Yue Meng

    (College of Economics and Management, Shenyang Ligong University, Shenyang 110100, China)

  • Yu Sun

    (Business School, Jilin University, Changchun 130000, China)

Abstract

The enhancement of local market size is an important element of sustainable economic development. The core purpose of the article is to prove that the increase of local market size has the attribute of industrial and spatial coupling, and that the deep integration of modernized industry-city has a profound impact on the increase of local market size. Based on panel data from 30 provinces in China from 2007 to 2021, this article employs a two-way fixed effects model to empirically test the impact of the deep integration of modernized industrial systems and new urbanization on the local market size. Furthermore, it uses industrial agglomeration, industrial structure upgrading, and urban-rural income gap as mediating variables to explore the mechanism. The results indicate that the deep integration of modernized industrial systems and new urbanization has a significant promoting effect on the local market size, with regional heterogeneity. The mediating effect test shows that the impact of the deep integration of modernized industrial systems and new urbanization on the local market size mainly operates through industrial agglomeration, industrial structure upgrading, and urban-rural integration.

Suggested Citation

  • Zhe Liu & Yue Meng & Yu Sun, 2025. "Research on the Impact and Mechanism of Modernized Industry-City Integration on the Size of the Local Market," Sustainability, MDPI, vol. 17(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2628-:d:1613681
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/6/2628/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/6/2628/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    2. Jianing Pang & Yimeng Zhang & Fangyi Jiao, 2023. "The Impact of the Digital Economy on Transformation and Upgrading of Industrial Structure: A Perspective Based on the “Poverty Trap”," Sustainability, MDPI, vol. 15(20), pages 1-20, October.
    3. Qingjun Li & Shuliang Zhao, 2023. "The Impact of Digital Economy Development on Industrial Restructuring: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    4. Changhua Shao & Han Dong & Yuan Gao, 2024. "New Quality Productivity and Industrial Structure in China: The Moderating Effect of Environmental Regulation," Sustainability, MDPI, vol. 16(16), pages 1-27, August.
    5. Wang, Q. & von Tunzelmann, N., 2000. "Complexity and the functions of the firm: breadth and depth," Research Policy, Elsevier, vol. 29(7-8), pages 805-818, August.
    6. Yongzheng Liu & Jorge Martinez-Vazquez & Alfred M. Wu, 2017. "Fiscal decentralization, equalization, and intra-provincial inequality in China," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(2), pages 248-281, April.
    7. Wenqi Zhao & Moau Yong Toh, 2023. "Impact of Innovative City Pilot Policy on Industrial Structure Upgrading in China," Sustainability, MDPI, vol. 15(9), pages 1-22, April.
    8. Kevin M. Murphy & Andrei Shleifer & Robert Vishny, 1989. "Income Distribution, Market Size, and Industrialization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(3), pages 537-564.
    9. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    10. ., 1989. "The Political Economy of Nationalized Industry," Chapters, in: Cost, Choice and Political Economy, chapter 6, pages 125-139, Edward Elgar Publishing.
    11. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
    12. Ramesh Chandra & Roger J. Sandilands, 2005. "Does modern endogenous growth theory adequately represent Allyn Young?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(3), pages 463-473, May.
    13. Yunchang Li & Xia Cao & Can Cui, 2023. "System Dynamics Theory Applied to Differentiated Levels of City–Industry Integration in China," Sustainability, MDPI, vol. 15(5), pages 1-17, February.
    Full references (including those not matched with items on IDEAS)

    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. Ciarli, Tommaso & Valente, Marco, 2016. "The complex interactions between economic growth and market concentration in a model of structural change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 38-54.
    2. Álvaro Martín Moreno Rivas, 2008. "Las leyes del desarrollo económico endógeno de Kaldor: el caso colombiano," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 10(18), pages 129-147, January-J.
    3. Desdoigts, Alain & Jaramillo, Fernando, 2009. "Trade, demand spillovers, and industrialization: The emerging global middle class in perspective," Journal of International Economics, Elsevier, vol. 79(2), pages 248-258, November.
    4. Grossmann, Volker, 2008. "Risky human capital investment, income distribution, and macroeconomic dynamics," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 19-42, March.
    5. Reto Foellmi & Christian Hepenstrick & Josef Zweim�ller, 2010. "Non-homothetic preferences, parallel imports and the extensive margin of international trade," IEW - Working Papers 497, Institute for Empirical Research in Economics - University of Zurich.
    6. Bilancini Ennio & D'Alessandro Simone, 2008. "Functional Distribution, Land Ownership and Industrial Takeoff: The Role of Effective Demand," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-36, August.
    7. Murata, Yasusada, 2007. "Taste heterogeneity and the scale of production: Fragmentation, unification, and segmentation," Journal of Urban Economics, Elsevier, vol. 62(1), pages 135-160, July.
    8. Bryan Paterson, 2005. "Institutions: Why are They Persistent and Why Do They Change?," 2005 Meeting Papers 446, Society for Economic Dynamics.
    9. Sabyasachi Tripathi, 2013. "Do Large Agglomerations Lead To Economic Growth? Evidence From Urban India," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 176-200, November.
    10. Carlos Humberto Ortiz & Diana Marcela Jim�nez, 2017. "Un análisis smithiano del crecimiento económico colombiano: avances metodológicos," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 87, pages 35-66.
    11. Yang, X. & Sachs, J.D. & Zhang, D., 1999. "Trade Pattern and Economic Development when Endogenous and Exogenous Comparative Advantage Coexist," Papers 3, Chicago - Graduate School of Business.
    12. Roehlano M. Briones, 2004. "Market Size, Differentiated Scale Economies and Interindustry Trade," International Trade 0412006, University Library of Munich, Germany.
    13. Nico Voigtländer & Hans-Joachim Voth, 2006. "Why England? Demographic factors, structural change and physical capital accumulation during the Industrial Revolution," Journal of Economic Growth, Springer, vol. 11(4), pages 319-361, December.
    14. Singh, Nirvikar, 2005. "The Idea of South Asia and the Role of the Middle Class," Santa Cruz Center for International Economics, Working Paper Series qt3868p628, Center for International Economics, UC Santa Cruz.
    15. Fafchamps, Marcel, 1997. "Mobile Capital, Local Externalities, and Industrialization," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 345-365, December.
    16. Haiwen Zhou, 2009. "Population Growth And Industrialization," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 249-265, April.
    17. Gui-Diby, Steve Loris & Renard, Mary-Françoise, 2015. "Foreign Direct Investment Inflows and the Industrialization of African Countries," World Development, Elsevier, vol. 74(C), pages 43-57.
    18. Ippei Fujiwara & Kiminori Matsuyama, 2024. "A Technology-Gap Model of 'Premature' Deindustrialization," American Economic Review, American Economic Association, vol. 114(11), pages 3714-3745, November.
    19. Dimitris Kallioras & Maria Tsiapa, 2015. "The Regional Dimension of Economic Growth in Ukraine," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 1(3), pages 71-95.
    20. Rohini Pande, 2005. "Profits and Politics: Coordinating Technology Adoption in Agriculture," Working Papers 922, Economic Growth Center, Yale University.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:17:y:2025:i:6:p:2628-:d:1613681. 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.