Effect Of Pan-Yangtze River Delta Economic Circle Overflow Urban Economic Growth

Increasing local national income, reducing the local disparity, promoting the coordinated economy development is the long-term goal of a country or region. With the development of market economy and the speeding up of economic integration, the spatial agglomeration and diffusion of economic activity is a worldwide phenomenon. A region’s economic growth not only depends on its own factors, but is also affected by other region’s growth. Based on study of spillover effects between cities of the pan-Yangtze river delta economics circle, this paper goes deeply into the interactions between cities, and try to provides a new view for narrowing the regional gaps and achieving balanced development.Based on the Growth Pole Theory and New Economic Geography, this paper modifies the Solow model, gets regional overall output variable into urban economic growth model, and measures the spillover effects every cities gets from the regional growth. Then, based on runoff economic theory, using logistics capacity, passenger capacity, capital capacity, technical capacity and information capacity as index, this paper compares the spillover effects by clustering analyzing and comprehensive analyzing, to study the probable spillover channels of regional economic growth.The results show that:there does exist significant spillover effects among the Yangtze river delta, the regional core cities and peripheral cites gets fewer spillover effect than the cities which locate between core cities. The per capita output between cities presents conditional convergence trends. After analyzing by runoff economy index, we find that passenger capacity, capital capacity, technical capacity affects region’s capacity of absorbing spillover effects, the influence of logistics capacity and information capacity is relatively weak. The conclusion of this article suggest to make full use of spillover effect of core cities and strengthen the policy tendency to peripheral cities. At the same time, we should enhance comprehensive flow economy capacity of the whole economic circle to strengthen interaction between cities and build effective channels for spillover effect.