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Market Integration and Regional Green Total Factor Productivity: Evidence from China’s Province-Level Data

Shiying Hou () and Liangrong Song ()
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Shiying Hou: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
Liangrong Song: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China

Sustainability, 2021, vol. 13, issue 2, 1-19

Abstract: The development of market integration has an important effect on regional green total factor productivity (GTFP). Based on the panel data of 30 provinces in China from 2008 to 2017, this paper studies the spatial effect and transmission mechanism of market integration on regional green total factor productivity by calculating the Malmquist–Luenburger index and using spatial econometric models. It was found that market integration can promote the improvement of regional green total factor productivity. This positive effect is not only directly reflected in the region, it also indirectly promotes the growth of GTFP in nearby regions. In addition, market integration has shown significant positive effects on efficiency improvement and technological progress, and market integration has affected regional green total factor productivity through them. The above conclusions are of great significance for China to develop a green economy and promote high-quality economic transformation.

Keywords: market integration; green total factor productivity; spatial correlation; transmission mechanism (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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