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Sustainable development can be mainly achieved by promoting the green transformation and development of the world economy and by improving the efficiency of regional green development, which often receive extensive attention from the academia. This paper uses a spatial econometric model to estimate the impact of manufacturing agglomeration on green development efficiency based on the panel data of China's Yangtze River Economic Belt (YREB). The results show an overall large gap of green development efficiency between regions in the Yangtze River Economic Zone, mostly due to the extremely uneven development of green development efficiency in the upper reaches. Opposite to the middle and lower reaches, manufacturing agglomeration in the upper reaches of the YREB improves green development efficiency. Manufacturing agglomeration is conducive to the improvement of green development efficiency in neighboring areas. Nonetheless, it may hinder green development efficiency by inhibiting green technological innovation. This paper provides empirical evidence and policy implications for applying manufacturing agglomeration to promote green development efficiency in accordance with local conditions. Highlights How manufacturing agglomeration (MA) affects green development efficiency (GDE). MA would hinder the improvement of GDE in China's YREB.  MA would hinder the improvement of GDE by inhibiting green technological progress. There is a significant regional heterogeneity in the impact of MA on GDE. MA has a positive spillover on the GDE of neighboring areas.

Developing high-quality manufacturing industries and realizing green transformation are relatively pressing issues in the 21st century. Existing studies only focus on the economic or environmental effects of agglomeration, and the combined effects of manufacturing agglomeration have been neglected. Therefore, by referring to industrial agglomeration theory and constructing a theoretical analytical framework for manufacturing agglomeration and green development, this paper adopts the spatial panel Durbin model and mediating effect model with the panel data from China’s Yangtze River Economic Belt to empirically test the influence and its mechanism of manufacturing agglomeration on green development. The results show that: (1) There are significant temporal and spatial differences in green development in the Yangtze River Economic Belt. Overall, green development has maintained a steady increase on the timeline, but each region shows a hierarchical structure of “multiple peaks-multiple centers”. (2) There is a typical inverted U-shaped relationship between manufacturing agglomeration and green development, and the linear and quadratic coefficients of manufacturing agglomeration are −0.585 and −0.167, respectively. (3) Under the constraints of temporal, spatial, and urban heterogeneity, the impacts of manufacturing agglomeration on green development show significant differences. (4) Manufacturing agglomeration affects green development through three paths: the labor force upgrading effect, industrial structure upgrading effect, and technological innovation effect. The study can provide a theoretical and empirical basis for the green development of developing countries around the world.

Sustainable development can be mainly achieved by promoting the green transformation and development of the world economy and by improving the efficiency of regional green development, which often receive extensive attention from the academia. This paper uses a spatial econometric model to estimate the impact of manufacturing agglomeration on green development efficiency based on the panel data of China’s Yangtze River Economic Belt (YREB). The results show an overall large gap of green development efficiency between regions in the Yangtze River Economic Zone, mostly due to the extremely uneven development of green development efficiency in the upper reaches. Opposite to the middle and lower reaches, manufacturing agglomeration in the upper reaches of the YREB improves green development efficiency. Manufacturing agglomeration is conducive to the improvement of green development efficiency in neighboring areas. Nonetheless, it may hinder green development efficiency by inhibiting green technological innovation. This paper provides empirical evidence and policy implications for applying manufacturing agglomeration to promote green development efficiency in accordance with local conditions.

No abstract