Producer Services Agglomeration and Endogenous Economic Growth——Empirical Study Based on the Spatial Simultaneous Equations Model
Hou Shu-xi
Abstract
Hou Shu-xi
Abstract
Using cross-section data in 2010 and 2011 in China,and based on the endogenous economic growth theory and spatial agglomeration theory,this article constructs a spatial simultaneous model of producer services agglomeration and endogenous economic growth for an empirical test on the endogenous relation between the agglomeration of producer services and economic growth in China. The empirical results show that China's economic growth and producer services agglomeration have significant spatial autocorrelation and heterogeneity; their endogenous relation is mutually promoting,but no crowded effect has yet been created. Therefore,strengthening inter-provincial cooperation to promote together the development of producer services,coordinating regional development to achieve reasonable layout of producer services agglomerations,optimizing economic growth to give full play to the role of producer services should be rational choices to make in China's economic planning.
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Using cross-section data in 2010 and 2011 in China,and based on the endogenous economic growth theory and spatial agglomeration theory,this article constructs a spatial simultaneous model of producer services agglomeration and endogenous economic growth for an empirical test on the endogenous relation between the agglomeration of producer services and economic growth in China. The empirical results show that China's economic growth and producer services agglomeration have significant spatial autocorrelation and heterogeneity; their endogenous relation is mutually promoting,but no crowded effect has yet been created. Therefore,strengthening inter-provincial cooperation to promote together the development of producer services,coordinating regional development to achieve reasonable layout of producer services agglomerations,optimizing economic growth to give full play to the role of producer services should be rational choices to make in China's economic planning.
Key concepts: Economies of agglomeration, Endogenous growth theory, Urban agglomeration, China, Economics, Endogeneity, Economic geography, Growth theory