Spatial Dynamics of Specialized and Sophisticated Small and Medium-Sized Enterprises on New High-Quality Productive Forces from an Evolutionary Economic Geography Perspective

Huibo Zhong, Mingwei Chu, Yuhang Xia, Keyu Zhai and Xing Gao ()
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Huibo Zhong: School of Economics, Beijing Institute of Technology, Beijing 102488, China
Mingwei Chu: School of Economics, Beijing Institute of Technology, Beijing 102488, China
Yuhang Xia: School of Economics, Beijing Institute of Technology, Beijing 102488, China
Keyu Zhai: School of Graduate Studies, Lingnan University, Hong Kong 999077, China
Xing Gao: School of Economics, Beijing Institute of Technology, Beijing 102488, China

Land, 2024, vol. 14, issue 1, 1-24

Abstract: Amidst global economic stagnation, China is undergoing a significant economic transformation by fostering new high-quality productive forces (NHPFs). In this transformative context, specialized and sophisticated small and medium-sized enterprises (SpecSof SMEs) play a critical role. This paper develops a framework from an evolutionary economic geography (EEG) perspective to analyze how these SMEs influence NHPFs. The study assesses the impact of specialized and sophisticated SMEs on NHPFs using OLS and addresses potential endogeneity issues through the application of instrumental variables. The results show that the Specialized and Sophistication Index (SSI) positively impacts NHPFs, with its effect strengthening from the company to the municipal level (by about 25%) but weakening at the provincial and national levels (to half of the municipal level), highlighting a clear marginal effect on regional NHPFs. Additionally, the geographically weighted regression (GWR) model was employed to investigate the complex and spatially varied relationships between key characteristics of specialized and sophisticated SMEs and NHPFs. Our findings suggest that while the relationship between SSI and NHPFs is generally positive, it is spatially heterogeneous, arising from variations in regional economic structures, market maturity, and industrial characteristics. This study provides a theoretical framework for understanding regional disparities in NHPF development through SpecSof SMEs and offers empirical evidence to inform region-specific policies and spatial planning strategies.

Keywords: specialized and sophisticated SMEs (SpecSof SMEs); new high-quality productive forces (NHPFs); evolutionary economic geography (EEG); geographically weighted regression (GWR) (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2024
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