Evaluating the Non-linear Interplay and Threshold Dynamics Between Aggregated Industry Synergy and Green Total Factor Productivity
Journal Title: Journal of Green Economy and Low-Carbon Development - Year 2023, Vol 2, Issue 2
Abstract
Driven by the swift progression of next-generation information technologies, a notable escalation in the synergistic aggregation of productive services and manufacturing industries is recorded. Prior research has primarily concentrated on the implications of standalone industry aggregation. In the current study, the theoretical ramifications of industry synergy aggregation on green total factor productivity have been delineated, with the foundation laid upon Marshall's conceptualization of agglomeration externalities. To empirically validate these theoretical underpinnings, a panel threshold model has been utilized. The data set comprises 92 cities of prefecture-level and above from five significant urban agglomerations: Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta, Chengdu-Chongqing, and the Middle Yangtze River area, spanning a period of 2010 to 2019. Results unveil a -shaped association between industry synergy aggregation and green total factor productivity. The existence of both agglomeration economies and diseconomies is substantiated in the current phase of industry synergy aggregation. Employing labor force pools and shared intermediate inputs as threshold variables, the initial impact of industry synergy aggregation on green total factor productivity appears to be negative, but after crossing the first threshold, the impact becomes positive, only to revert to negative post traversing the second threshold. Alternatively, when knowledge spillover is taken as the threshold variable, the influence begins as negative, turns positive post the first threshold, and retains the positive influence beyond the second threshold, exhibiting a stronger promoting effect. The findings highlight the recommendation that industry development strategies ought not to be solely centered on the geographical congregation of productive services and manufacturing industries. Instead, a significant emphasis on exploiting the benefits of agglomeration externalities is advised. Specifically, for cities grappling with excessive industry synergy aggregation, strategies should prioritize facilitating industrial relocation as a means to temper the inhibitory effects of agglomeration diseconomies on green total factor productivity.
Authors and Affiliations
Yidong Qin
Keywords
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- EP ID EP731970
- DOI https://doi.org/10.56578/jgelcd020203
- Views 86
- Downloads 0
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