Does Network Externality of Urban Agglomeration Benefit Urban Economic Growth—A Case Study of the Yangtze River Delta

Abstract

Scholars have conducted a large number of empirical studies on agglomeration externalities and network externalities at the urban scale, but there are relatively few studies at the urban agglomeration scale. For the integrated development of the Yangtze River Delta (YRD), analyzing the impact of network externalities and agglomeration externalities on urban development can provide academic references for the integrated development of urban agglomerations. The results show that: (1) From 2000 to 2010, the average GDP growth rate of the cities in the YRD region showed a rapid growth trend but began to slow down after 2010, showing an outward spatial distribution pattern. (2) From 2000 to 2020, the growth rate of Shanghai’s investment in cities in the YRD showed a downward trend and an outward spatial diffusion. The growth rate of investment within the YRD showed a slowing trend from 2000 to 2015 and increased after 2015, showing a spatial distribution from northwest to southeast. From 2000 to 2020, the growth rate of investment from other cities in China to cities in the YRD showed a continuous upward trend, and spatially formed a distribution characteristic from northwest to southeast. (3) The growth of internal investment in the YRD and that of other cities across China can accelerate urban economic growth, and the growth of internal investment in the YRD has a greater role in promoting economic growth, indicating that the “agglomeration externalities” and “network externalities” at the urban agglomeration scale both can promote urban economic growth, but the effect of the “agglomeration externalities” within the urban agglomeration is more obvious. (4) The growth of investment in the core city Shanghai does not play a significant role in the long-term economic growth of cities in the region.