An Empirical Study on Spatial Agglomeration and China's Provincial Economic Growth:1991~2010

Based on the China's provincial panel data from 1991 to 2010,this paper uses the two- stage least squares method to estimate the impact of spatial agglomeration on provincial economic growth,which effectively overcomes the possible endogeneity issues in our regression and rectifies the downward bias problem in the past research.We find that the impact of spatial agglomeration on provincial economic growth spatial agglomeration is positive and statistically significant,and we also find that this impact can be weakened as the transportation cost reduces.Besides,the result survives from various robustness checks.In addition,the sub- regional regression shows that the effect of spatial agglomeration depends on the dimension of the geographic location(coastal or inland areas).