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《Geographical Research》 2018-09
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Market potential, spatial spillover and manufacturing industry agglomeration

WANG Haohan;XU Jianjun;Faculty of Business, Ningbo University;Institute of Ningbo Bay Area Economic, College of Science and Technology Ningbo University;  
In order to have an in-depth analysis of the important role of the domestic and foreign markets potential that plays in promoting the agglomeration of manufacturing industry in China, this paper firstly introduces a new economic geography model to analyze the impact of domestic and international market potential(DIMP) on the manufacturing agglomeration,and then uses spatial Durbin methods to examine DIMP's impact on China's manufacturing industry agglomeration based on the cross-provincial panel data. The result of parameter estimation well confirms the significant direct effect of the DIMP within provinces on manufacturing agglomeration and the spatial spillover effect of the DIMP between provinces on manufacturing agglomeration. The empirical results also illustrate the direct role of transport infrastructures and marketilization in promoting manufacturing agglomeration, the direct promotion of labor productivity to manufacturing agglomeration and the positive spillover effect, and the direct and indirect blocking effects(negative spillover) of actual wage levels on manufacturing agglomeration. What's more, the estimation results based on different spatial weight matrixes are consistency. Finally, the policy implications for the above conclusion are proposed. The characteristics of this study are as follows:(1) The market potential is subdivided into two parts, namely domestic and foreign market potentials, which characterize the intrinsic relationship between the two types of market potentials and manufacturing agglomeration under the framework of the new economic geography;(2) Integrating supply and demand factors into a unified analytical framework and taking into account the characteristics of spatial dependency among regions, and using the spatial Durbin model to focus on the complicated impact of the potential of domestic and foreign markets on manufacturing agglomeration, this model suggests that the market potential not only has a direct impact on manufacturing agglomeration but also takes note of the spillover effect of market potential on manufacturing agglomeration;(3) We introduce the interactive items of DIMP into the model to further verify the existence of the "alternative" relationship in domestic and foreign markets in the formation of manufacturing agglomeration;(4) The conclusions drawn from the spatial weights of geographic distance and 0-1 space adjacency spatial weight matrix are consistent, which illustrates the empirical conclusion of the stability.
【Fund】: 国家自然科学基金项目(71773057);; 教育部人文社会科学研究青年基金项目(16YJCZH124 17YJCZH218);; 浙江省高校重大人文社科攻关计划资助项目(2016QN005)
【CateGory Index】: F424
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