Does Network Externality of Urban Agglomeration Benefit Urban Economic Growth—A Case Study of the Yangtze River Delta

Abstract

Scholars have conducted a large number of empirical studies on agglomeration externalities and network externalities at the urban scale, but there are relatively few studies at the urban agglomeration scale. For the integrated development of the Yangtze River Delta (YRD), analyzing the impact of network externalities and agglomeration externalities on urban development can provide academic references for the integrated development of urban agglomerations. The results show that: (1) From 2000 to 2010, the average GDP growth rate of the cities in the YRD region showed a rapid growth trend but began to slow down after 2010, showing an outward spatial distribution pattern. (2) From 2000 to 2020, the growth rate of Shanghai’s investment in cities in the YRD showed a downward trend and an outward spatial diffusion. The growth rate of investment within the YRD showed a slowing trend from 2000 to 2015 and increased after 2015, showing a spatial distribution from northwest to southeast. From 2000 to 2020, the growth rate of investment from other cities in China to cities in the YRD showed a continuous upward trend, and spatially formed a distribution characteristic from northwest to southeast. (3) The growth of internal investment in the YRD and that of other cities across China can accelerate urban economic growth, and the growth of internal investment in the YRD has a greater role in promoting economic growth, indicating that the “agglomeration externalities” and “network externalities” at the urban agglomeration scale both can promote urban economic growth, but the effect of the “agglomeration externalities” within the urban agglomeration is more obvious. (4) The growth of investment in the core city Shanghai does not play a significant role in the long-term economic growth of cities in the region.

Does Urban Agglomeration Promote the Development of Cities? Evidence from the Urban Network Externalities

“…Zhang et al (2022) [38] quantify urban network externalities in terms of flow volume and structural position using capital flow data from 12 urban agglomerations in China and demonstrate that urban network externalities have a positive impact on regional economic growth. Jiang et al (2022) [39] distinguish agglomeration externalities from network externalities using investments inside and outside urban agglomerations and confirm that both can significantly contribute to urban economic growth. Li et al (2021) [33] use the number of strategic emerging firms and their linkages to refer to agglomeration externalities and network externalities, respectively, and demonstrate that network externalities play a more significant role in urban growth.…”

Comprehensive Evaluation and Analysis of Human Settlements’ Suitability in the Yangtze River Delta Based on Multi-Source Data

“…The Declaration of the United Nations Conference on Human Environment and the SDGs both take the construction of human settlements as an important topic [60], which shows that human settlements have become the focus of global attention [5]. In addition, with the continuous development of globalization and integration, urban agglomeration has gradually become an important carrier of modernization and can have a profound impact on global social and economic development [61]. In this context, it is of great practical significance to explore the construction of human settlements in urban agglomerations.…”

Agglomeration Externalities vs. Network Externalities: Impact on Green Technology Innovation in 283 Chinese Cities

“…Notably, compared to the positive influence on GTI that was observed once AEs crossed the inflection point, the promotional effect of NEs on GTI was found to be markedly stronger. This demonstrates that urban NEs not only exert a significant impact on economic development [7,64], but also emerge as a vital pathway to bolster GTI. The existing research on the impacts of urban networks on GTI has primarily concentrated on the structural characteristics of urban networks.…”

“…The existing literature often frames industrial agglomeration as the subject of investigation, with cities serving as the operational units, thereby probing the effects of AEs on economic growth, innovation, and environmental pollution. Concerning economic growth, Tang et al [6], Jiang et al [7], and Peng et al [8] have independently scrutinized the influence of AEs on urban economies within various Chinese provinces, the Yangtze River Delta region, and in diverse city clusters. Their research collectively affirmed that AEs considerably advance economic growth.…”