Explaining and modeling the impact of industrial co-agglomeration on regional economic growth in China: integrated a quality concern of night-time light perspective.

Abstract

The double-wheel drive of manufacturing industries and producer services industries is one of the key pathways to promote high-quality development relying on a modern industrial system. This paper explores the impacts of industrial co-agglomeration on regional economic growth in China with systematic consideration of static, dynamic, and spatio-temporal perspectives based on panel data for 285 prefecture-level cities from 2003 to 2020, employing the consolidated night-time light data. The empirical results show that industrial co-agglomeration significantly accelerates regional economic growth, especially high-tech intensity producer services industries, information industries, and finance industries. In addition, its spatial spillover effects are evidently established, which are characterized by cyclic accumulative, feedback features, and distance attenuation. Carrying out robustness tests, the preliminary regression results are verified. The heterogeneous influences are established across cities with different geographical locations, innovation capacities, and resource endowments. The further mechanism analysis indicates that industrial upgrading, technological progress, and efficiency enhancements account for the main channels for a sharp promotion in regional economic growth over the sample period. Furthermore, the government moderates this process more significantly than market forces do, especially when it comes to macroexogenous shocks that are regulated by the government. The findings of this study recommend policymakers to give full play to the positive externalities of industrial co-agglomeration and accelerate the industrial co-agglomeration process in a reasonable manner, so as to promote high-quality economic growth in China.