Abstract
This paper empirically studies the effect of central city economic growth on the peripheral city economic growth in urban agglomeration. Using the panel data of 120 Chinese cities from 2000 to 2012, we find that the central city economic growth significantly and substantially increases the peripheral city economic growth. These findings not only enrich the relative researches on Chinese urban agglomeration, but also strengthen the understanding of the key role of the central city under the background of promoting urbanization in China.
Highlights
In recent years, with the acceleration of China’s urbanization process, the topic of promoting the development of urban agglomerations has received increasing attention
This paper empirically studies the effect of central city economic growth on the peripheral city economic growth in urban agglomeration
Using the panel data of 120 Chinese cities from 2000 to 2012, we find that the central city economic growth significantly and substantially increases the peripheral city economic growth
Summary
With the acceleration of China’s urbanization process, the topic of promoting the development of urban agglomerations has received increasing attention. It can be seen that the unique advantage of urban agglomeration economy theoretically is derived from the agglomeration effect and positive spatial externalities mentioned above and the central city, which is the core region of economic and social activities within urban agglomerations, is an important carrier to exploit these two advantages. This paper exploits the panel data of prefecture-level cities in China from 2000 to 2012, using two-way fixed effects regression model to empirically examine how the economic growth of the central city within the urban agglomeration affects the economic growth of the peripheral cities. The empirical results of this paper provide a possible answer for the question about whether giving priority to the development of large cities or small and medium-sized cities. The remaining parts of this paper are organized as follows: the second part reviews the relevant literature; the third part proposes the theoretical hypothesis; the fourth part is the empirical strategy and data sources; the fifth part gives the basic empirical results; it is the conclusion and policy implications
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