The Impact Of Industrial Agglomeration On Urban Total Factor Productivity In The Yangtze River Economic Belt

Since the reform and opening up,China has made remarkable achievements in driving sustained and high-speed economic growth through large-scale factor input.The Yangtze River Economic Belt occupies an important position in our country.The change in the economic aggregate is also the same.In 2017,the real GDP of the Yangtze River Economic Belt reached 37.1 trillion yuan,and the economy.The total amount accounts for 44.9%of the total national economy,which shows that the Yangtze River Economic Zone has great development potential and strategic support role in China.However,in recent years,unbalanced development and polarization between different regions have become serious.The problem of high input and low efficiency in industrial production is widespread.At the same time,it is faced with a series of problems,such as resource and environment,shortage of labor force and weakening of traditional power of economic growth.These problems have deeply affected the sustainable development of China's economy.The key to solving these problems lies in how to improve total factor productivity.The improvement of productivity level and total factor productivity is an important source and internal motive force of China's economic growth.Industrial agglomeration affects TFP mainly through the following ways:firstly,industrial agglomeration can promote the flow and creation of material capital to form the accumulation of material capital,so as to improve the efficiency of labor use by promoting division of labor,specialization of production,improving the efficiency of resource optimization and allocation,and upgrading the level of technical knowledge;secondly,industrial agglomeration can enhance the investment of human capital.The attraction of excellent talents is conducive to the accumulation of human capital and the promotion of the level of specialization so as to enhance productivity through the allocation of factors of production and technological progress.Thirdly,industrial agglomeration forces technological innovation through knowledge spillover and interactive exchange and competitive mechanism,and ultimately through these three mechanisms to optimize the allocation and improve market efficiency to promote the improvement of total factor productivity.Based on the data of 108 cities in the Yangtze River Economic Belt from 2006 to 2016,this paper constructs a dynamic panel model and uses the method of systematic GMM estimation to empirically analyze the internal relationship between them from two aspects of the Yangtze River Economic Belt as a whole and subregion,and empirically test the effect of different industrial agglomeration.Finally,the empirical results show that:firstly,for the Yangtze River Economic Belt as a whole,manufacturing agglomeration significantly inhibits the increase of total factor productivity,while service industry agglomeration significantly promotes the increase of total factor productivity;sectorally,the impact of urban manufacturing agglomeration on urban productivity of it is still negative,but its inhibition is weakened in turn;and the upper are The promotion of service industry agglomeration is enhanced in turn.Secondly,from the perspective of the effect of manufacturing agglomeration,the interaction coefficient between manufacturing agglomeration and human capital and material capital is significantly positive for the whole Yangtze River Economic Belt,while the interaction coefficient between manufacturing agglomeration and technological innovation is not significant;from the perspective of subregion,the interaction coefficient between downstream manufacturing agglomeration and human capital,material capital and technological innovation is significantly positive;The results of the upstream and middle regions are consistent with the whole,and the input and creation of large-scale material capital is the main way to improve the total factor productivity of manufacturing agglomeration.Thirdly,from the result of service industry agglomeration effect,the interaction coefficient between service industry agglomeration and human capital,technological innovation and material capital is positive for the Yangtze River Economic Belt as a whole,and all pass the 1%significance test;from the subregional point of view,the measurement results in the middle and lower reaches are consistent with the whole,while the interaction between service industry agglomeration and technological innovation in the upper reaches is obvious.The interaction between human capital and material capital is significantly positive,and technological innovation brought about by the increase of R&D investment and scientific and technological expenditure is the main way for service industry agglomeration to promote total factor productivity.Fourthly,the level of government intervention,transportation infrastructure and market competition all have a significant role in promoting urban productivity,while foreign direct investment inhibits the increase of productivity,but the effects are different in different regions of the Yangtze River Economic Belt.On this basis,some policy suggestions are put forward to promote urban total factor productivity in terms of improving the level and quality of manufacturing agglomeration development,accelerating the optimization and adjustment of the internal structure of service industry agglomeration,realizing the orderly transfer of industries between the middle and lower reaches of the Yangtze River Economic Belt,and optimizing the allocation of factor resources.