Regional Synergy and Economic Growth: Evidence from Total Effect and Regional Effect in China

Ying Liu, Lin Li and Fei Teng Zheng

International Regional Science Review, 2019, vol. 42, issue 5-6, 431-458

Abstract: The synergy between different regions may enable to realize the system optimization of 1 + 1 > 2 and generate new growth potential. However, research on regional synergy and economic growth is very rare. Here, we developed a theoretical framework of regional synergy and economic growth and then overcame the efficiency-added calculation issue to measure the synergy between every two cities among 285 cities (40,470 city–city units) in China. Further, the effects of regional synergy on economic growth are tested. The total effect tests whether regional synergy could promote the overall economic growth, and the regional effect tests whether regional synergy could promote the economic growth of each subregion. The results show that regional synergy can significantly promote overall economic growth, but only the cities in the developed eastern region could benefit from synergy. The mechanism test shows that regional synergy acts on economic growth through interregional resource flow. Regional synergy promotes the economic growth of cities with resource inflow, while it curbs the economic growth of cities with resource outflow.

Keywords: regional synergy; efficiency-added; economic growth (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:sae:inrsre:v:42:y:2019:i:5-6:p:431-458

DOI: 10.1177/0160017619838317

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