Growth Effects Of Regional Economic Networks

The phenomena of regional economic networks show that a region’s economic growth not only connects with the local relevant factors of production inputs, but also relates to its economic networks. Network growth effects play an active role in regional economic growth, including improving efficiency of resource allocation, bringing more synergy benefits, improving market efficiency, increasing economies of scale and enhancing the stability of regional economic system. In this regard, this paper tries to incorporate network growth effects into the classic economic growth model, theoretically validates the existence of network effects and empirically testifies the existence of network growth effects and its spillover mechanism by using the spatial econometric methods, together with the data of a region composed of 168 cities.The results reveal that network growth effects are highly significant in this region.Generally speaking, total network elasticity toeconomic growthis about 0.37%. For highway network, 1% increase in its level will bring 0.227% increase in output; for city network, 1% increase in city network connectivity will bring 0.14% increase in output; for information network, 1% increase in its level will bring 0.007%increase in output. The source of network growth effects can be well explained by Spatial Durbin Model. In other words, these effects can be devided into two parts, including spatial spillover effect and network synergy. Spatial spillover effect counts for 0.04%, which means 1% increase in economic development of adjacent area will bring 0.04% increase inlocal economic growth. From mode of synergyamong network nodes, city network showed obvious competitivesynergy, while both the highway network and the information network show obvious cooperative and complementary synergy. The overall perofance of network is quite good. In networks, nodes are intended to be more cooperative, complementary, and their competitions are always under order and control. In all, the network can increaseeconomic growth by both directand indirect network synergy, which means promoting the formation of complementary economic organization structure and guiding the ordered competitions to furtherimprove the interaction and cooperation between regions.Based on the research conclusions, we can infer that in the development process of modern regional economy, attention shouldn‘t be only paid to labor, capital and other traditional production elements, but also need to foucs on the important role of regional economic networks. Therefore, the task of how to better the development of regional economic networks should be incorporated into decision making process of government.