Spatial Perspective on Regional Growth in China: Evidence from an Extended Neoclassic Growth Model

Following Ertur and Kock (2007) and Elhorst, Piras, and Arbia (2010), a spatially-extended neoclassical Solow growth model is developed to explore the spatial characteristics of regional economic growth at the prefecture level over the period 1992–2010 in China. A Spatial Durbin Model with the spatial fixed effects is verified in empirical analysis. The results show that spatial spillovers exist not only among the economic growth of neighbors, but also among the initial economic levels of neighbors. Furthermore, the same analysis is conducted for a new specified sample by controlling spatial heterogeneity, and the results show that spatial spillover effects are enhanced and the velocity of convergence is greater. The empirical analysis verifies that the extended neoclassic growth model is a feasible foundation to explore the spatial characteristics of regional economic growth over the period 1992–2010 in China.