Siphon and radiation effects of ICT agglomeration on green total factor productivity: Evidence from a spatial Durbin model

Abstract

Information and communication technology (ICT) agglomeration has a dual role in influencing economic growth and environmental recovery, and there is a significant spatial spillover effect. This paper will explore the spatial effects of ICT agglomeration on green total factor productivity (GTFP) through a spatial Durbin model (SDM) using balanced panel data for 282 cities in China from 2008 to 2019. Further, we explore the regional heterogeneity, impact paths, and the threshold effects between ICT agglomeration and GTFP. We obtained the following research findings: (1) ICT agglomeration affects GTFP through spatial spillover effects. Specifically, ICT agglomeration can significantly contribute to local GTFP, but negatively affects GTFP of surrounding cities. (2) ICT agglomeration has a significant contribution to local GTFP in eastern cities, while it only has a negative effect on GTFP in surrounding cities in central and western cities. (3) ICT agglomeration in large cities has a significant radiation effect, which can promote local and overall GTFP; ICT agglomeration in small cities has a significant siphon effect, which has a significant negative impact on both local and surrounding cities' GTFP. (4) ICT agglomeration can contribute to GTFP by promoting green technology innovation and science expenditure, and ICT agglomeration has a significant contribution effect on GTFP only when the economic growth level crosses the threshold. The results of this paper provide a valid reference for developing a green economy in China.