Spatiotemporal Evolution and Transformation Mechanism of China’s “Dual Circulation” Economy

Yubin Wu, Feiyang He and Fu’an Shi ()
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Yubin Wu: School of Accounting, Lanzhou University of Finance and Economics, Lanzhou 730020, China
Feiyang He: School of Accounting, Lanzhou University of Finance and Economics, Lanzhou 730020, China
Fu’an Shi: School of Accounting, Capital University of Economics and Business, Beijing 100070, China

Sustainability, 2025, vol. 17, issue 21, 1-34

Abstract: From the perspective of “dynamic supply–demand coordination,” this study evaluates the development level of China’s economic “dual circulation” across 30 provinces during 2001–2020. Employing Kernel density estimation, natural breakpoint method, and exploratory spatial–temporal data analysis (ESTDA), we provide a comprehensive examination of the spatiotemporal evolution and developmental dynamics of China’s “dual circulation” economy. Furthermore, a nested matrix linking the quantile response types of driving factors with spatiotemporal transition types is constructed to uncover the mechanisms underlying these transitions, in order to form a unified understanding of the significance of China’s implementation of the economic “dual circulation” strategy against the background of high-quality development and lay a solid theoretical foundation for the empirical measurement of China’s economic “double circulation”. The results reveal the following: (1) Despite the “dual circulation” development level of Chinese provinces steadily improving over time, a marked east-to-west gradient of regional imbalance remains; (2) The spatial correlation of the “dual circulation” development level across provinces is significant, with changing trends influenced by neighboring provinces, showing both “concentration” and “differentiation” characteristics; (3) The spatial agglomeration trend of China’s “dual circulation” economy continues to strengthen, with distinct characteristics of “high rigidity + low mobility.” The low mobility of provinces locked in low-level spatial patterns will become a key limiting factor for their overall transition; (4) The quantile response types of the driving factors for the “dual circulation” development level in each province exhibit nest ability with their spatiotemporal transition types. The driving and constraining patterns of various driving factors coexist and interact.

Keywords: China’s “dual circulation” economy; dynamic evolution; exploratory spatial–temporal data analysis; quantile regression; transition mechanism (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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