The direct and indirect drag effects of land and energy on urban economic growth in the Yangtze River Delta, China

Caijing Zhao, Yuming Wu, Xinyue Ye (), Baijun Wu and Sonali Kudva
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Caijing Zhao: East China University of Science and Technology
Yuming Wu: East China University of Science and Technology
Xinyue Ye: Kent State University
Baijun Wu: East China University of Science and Technology
Sonali Kudva: Kent State University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2019, vol. 21, issue 6, No 17, 2945-2962

Abstract: Abstract This paper estimates the direct and indirect drag effects of land and energy on urban economic growth in the Yangtze River Delta in China over the period of 2003–2012. Using the spatial Durbin panel data model (SDPDM), we found that such urban economic growth is spatially autocorrelated and that resource input has a positive impact on economic growth. The SDPDM results show that the direct drag effect of land and energy is, respectively, 0.75 and 2.38%, indicating that the constraints of land and energy will reduce the economic growth rate by 0.75 and 2.38%. Besides, the indirect drag effect is 0.40 and 4.86%, suggesting that the focal unit’s economic growth would also be influenced by the behavior of its neighbors. Based on these results, this paper proposes some policy recommendations.

Keywords: Urban economic growth; Drag effects; Direct and indirect spillover effects; Spatial Durbin panel econometrics model; Yangtze River Delta (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/s10668-018-0168-1

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