The Study Of Spatial Club Convergence Of Regional Economic Growth Based On Spatial Spillover Effects

In recent years, the discussion carried out around the convergence hypothesis of economic growth has become the forefront of issues. However, in the process of regional economic growth, the growth is driven not only from the regional production factors endowments, but geographical location of one region and the economic performance of its neighbors will affect its own growth path. In this paper, based on the neoclassical growth theory and new economic geography spatial club convergence is defined. The benchmarks of the concept are regional spatial spillover effects. After that theoretical models and empirical research framework are built. And then, the empirical research will be carried out using exploratory spatial data analysis and spatial econometric techniques, in the support of MATLAB, ArcGIS and other software. The objects of this paper are four economic regions of China with the different degree of development. Firstly the regions will be tested whether there are significant spatial spillover effects, and whether there has arisesd the spatial club convergence. If there is, which type of spatial convergence clubs they belong to? And then, in order to understand the reasons of spatial club convergence in the regions of heterogeneity, the analysis of spatial heterogeneity and the spatial spillover effects of growth poles will be carried out. The main conclusion is as follows:(1) Combined with the classic definition of space club convergence and the regional spatial attributes, this paper put forward the definition of the spatial club convergence. This concept means that a group of regions will convergence at the same steady state if their locations are close and with the similar initial conditions and structural characteristics. This concept emphasizes the spatial properties of the members of the spatial convergence club. The spatial spillover effects are the benchmark to define the regional spatial properties. The direct cause of spatial spillover effects is the economic performance of its neighbors. Based on the theory and reality the spillover path of the spatial spillover effects is divided into 3 types: the spatial spillover effects through the affecting of the rate of regional per capita income growth of the neighbors; the spatial spillover effects through the affecting of the random shocks of the neighbors; the spatial spillover effects through the affecting of the level of per capita income of the neighbors. Furthermore, taking into account the possibility of the difference of the spillover path in different spatial convergence clubs the spatial convergence club will be divided into six types: developed spatial convergence club caused by the rate of regional per capita income growth of the neighbors; developing spatial convergence club caused by the rate of regional per capita income growth of the neighbors; developed spatial convergence club caused by the random shocks of the neighbors; developing spatial convergence club caused by the random shocks of the neighbors; developed spatial convergence club caused by the level of per capita income of the neighbors; developing spatial convergence club caused by the level of per capita income of the neighbors.(2) In this paper, the theoretical model of spatial club convergence hypothesis is constructed within the framework of the neoclassical economic growth model of space under the assumptions of homogeneous regions. It is proved that in the presence of spatial spillover effects, we cannot get the conclusion of spatial club convergence unconditionally from the aspect of theory. It will be restricted by the relevant parameters. The illumination to the empirical study is that not all of groups of spatially associated regions will converge. It need be tested conditionally. And then, combined with the classical core - periphery model of the new economic geography, it is proved that the conclusions of that model will support the viewpoint of this paper from different aspect. (3) It is chosen two developed regions - the Yangtze River Delta and Pearl River Delta, and two developing regions– Zhongyuan urban agglomeration and Wuhan urban agglomeration as the cases in this paper. The conclusions are as follows. The four regions have showed significant spatial autocorrelation. Therefore it is firstly proved significant spatial spillover effect within them. The spillover path of the spatial spillover effects of the two developed regions is significantly driven by the level of per capita income of the neighbors. And the spillover path of the spatial spillover effects of the two developing regions is significantly driven by the random shocks of the neighbors. under the assumption of homogeneity the conclusions of the test of spatial club convergence hypothesis are the two developed regions belong to the developed spatial convergence club caused by the level of per capita income of the neighbors and the two developing regions belong to the developing spatial convergence club caused by the random shocks of the neighbors. In considering the case of spatial heterogeneity it can be found that a significant core - periphery structure are showed in the Yangtze River Delta, Pearl River Delta and the Zhongyuan urban agglomeration and not significant in wuhan urban agglomeration. The analysis of the spatial spillover effects of the growth poles proves that the spatial spillover effects of the growth poles are significantly higher than that of non-growth poles in the three regions and slightly higher in Wuhan urban agglomeration. So it is proved that the spatial club convergence can also occur within heterogeneous regions driven by the strong spatial spillover effects of growth poles.