The effects of agglomeration externalities on urban green total-factor productivity in China

Zhonghua Cheng, Xiang Li, Yeman Zhu and Meixiao Wang

Economic Systems, 2023, vol. 47, issue 2

Abstract: For China's urban industrial layout and green development, determining which types of agglomeration externalities are most advantageous to the rise of green total-factor productivity has both theoretical and practical relevance. This research experimentally studies the effects of three types of agglomeration externalities on urban green total-factor productivity using the data of 285 Chinese cities from 2003 to 2018. The findings demonstrate that urban green total-factor output is rising, albeit with certain differences during different time periods. Both the Jacobs externality and the Porter externality are favorable for increasing urban green total-factor production when all cities are evaluated together, although the latter has a stronger promoting influence. The effect of the Marshall-Arrow-Romer externality, on the other hand, is not significant. Furthermore, these effects also depend on the stage of economic development and population size.

Keywords: Agglomeration externalities; Marshall-Arrow-Romer externality; Jacobs externality; Porter externality; Green total-factor productivity (search for similar items in EconPapers)
JEL-codes: O3 Q5 R1 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:47:y:2023:i:2:s0939362522000875

DOI: 10.1016/j.ecosys.2022.101025

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