Economic Agglomeration and Regional Labor Productivity Difference in China ——GMM Estimation Based on Spatial Dynamic Panel Data Model
MAO Qi-liang1,WANG Fei2,LI Jun3
(1.College of Urban Economics and Public Administration,Capital University of Economics and Business,Beijing 100070,China; 2.School of Public Policy and Management,Tsinghua University,Beijing 10084,China; 3.School of Business,Anhui University of Technology,MA Anshan 243002,China)
Abstract This paper estimates agglomeration effects across prefecture regions from 2000 to 2009 in China by spatial dynamic panel data model.This analysis is extended in two main ways due to endogeneity of the spatial concentration of employment and ignorance of spatial autocorrelation in former researches.First,we use dynamic panel estimation techniques (system GMM),thus offering an alternative methodological treatment of the inherent endogeneity problem.Second,we adopt spatial econometrics to eliminate the impact of spatial autocorrelation on estimation.Our results confirm the presence of significant agglomeration effects,with an estimated long-run elasticity of 3.44 percent,which is lower than those of former researches.Approach improvement in two ways corrects the over estimation to some extent.
MAO Qi-Liang,WANG Fei,LI Dun. Economic Agglomeration and Regional Labor Productivity Difference in China ——GMM Estimation Based on Spatial Dynamic Panel Data Model. Economic Survey, 2015, 32(3): 079.
2015, Vol. 32 
