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The direct and indirect drag effects of land and energy on urban economic growth in the Yangtze River Delta, China

Author

Listed:
  • Caijing Zhao

    (East China University of Science and Technology)

  • Yuming Wu

    (East China University of Science and Technology)

  • Xinyue Ye

    (Kent State University)

  • Baijun Wu

    (East China University of Science and Technology)

  • Sonali Kudva

    (Kent State University)

Abstract

This paper estimates the direct and indirect drag effects of land and energy on urban economic growth in the Yangtze River Delta in China over the period of 2003–2012. Using the spatial Durbin panel data model (SDPDM), we found that such urban economic growth is spatially autocorrelated and that resource input has a positive impact on economic growth. The SDPDM results show that the direct drag effect of land and energy is, respectively, 0.75 and 2.38%, indicating that the constraints of land and energy will reduce the economic growth rate by 0.75 and 2.38%. Besides, the indirect drag effect is 0.40 and 4.86%, suggesting that the focal unit’s economic growth would also be influenced by the behavior of its neighbors. Based on these results, this paper proposes some policy recommendations.

Suggested Citation

  • Caijing Zhao & Yuming Wu & Xinyue Ye & Baijun Wu & Sonali Kudva, 2019. "The direct and indirect drag effects of land and energy on urban economic growth in the Yangtze River Delta, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(6), pages 2945-2962, December.
    • Handle: RePEc:spr:endesu:v:21:y:2019:i:6:d:10.1007_s10668-018-0168-1
    DOI: 10.1007/s10668-018-0168-1
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    References listed on IDEAS

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