Research On The Impact Of Network Externality On Urban Competitiveness

In the wake of the diversification and networked of urban connections,geographic spatial and temporal data based on attributes or connections enriches the mapping mode of urban networks.The urban network externality performing embeddedness and links in networks is getting more and more attention.It supplements the agglomeration externalities shaped by geographical foundations based on networks and profoundly changes competition and partnership between cities.This paper took the major cities which consist of provincial capitals and cities with provincial status in China as examples to explore the influence of urban network externality on urban competitiveness.Based on the data of parent and subsidiary companies of the IPO(initial public offering),we constructed the company networks to indicate urban network and analyze the statistical and structural characteristics of city network.The interlocking urban network link rate was calculated to characterize urban network externality.The analytic network process(ANP)was used to build the index of urban competitiveness.The panel models were used to verify the correlation and influence between the two above.We tried to find intermediary variables from the urban interaction to explain the mechanism of the influence,and tested the spatial spillover effect of the influence by econometric model.The study shows that:(1)The network density and connection between major cities in China are enhanced to form a "diamond-shaped" structure with the core provincial capitals of Beijing-Tianjin-Hebei area,Yangtze River Delta,Pearl River Delta,Chengdu,and Chongqing as the axes.The city network is gradually mature and has the degree of "Beijing-Shanghai directivity".The increase of centrality indicates that the control ability of the two in the network is gradually stronger and stronger,and the decrease of intermediary centrality indicates that the power of "power bridge hub" is evacuated outward.The spatial evolution of network connection and centrality of major cities in China tends to be a stable "diamond-shaped" structure.The axes of this structure are the core cities of important urban agglomerations in China,including Beijing,Tianjin,Guangzhou,Shanghai,Hangzhou,Chengdu,and Chongqing.(2)In the network of major cities in China,the spatial distribution of cohesive subgroups tends to be complete and concentrated,and the spatial distributions of urban network externalities and urban competitiveness also form a "diamond-shaped" structure.The main benefit block is mainly composed of the provincial capitals in the western and northeastern.The members of the block have more internal contacts and less external contacts.The spatial distribution of the net spillover block has experienced the process of moving from the edge to the center.The bidirectional spillover block has more internal and external contacts at the same time.After 2017,it is mainly composed of Beijing and Shanghai to lead the beefing-up of provincial capital competitiveness.The broker block jumps between the central and western provincial capitals and assumes the role of "bridge" between the net spillover block and the net benefit block.The network externality and urban competitiveness of major cities in China show an upward trend in time series,and form a "diamond-shaped" structure same as centrality in space.(3)Network externalities of major cities in China have a positive impact on urban competitiveness.Synergy effect and size borrowing have similar partial intermediary effects.The results of fixed effect model show that there is a significant positive correlation between urban network externalities and urban competitiveness.By the fixed time effect,the rising trend that urban network externalities positively affect urban competitiveness has weakened in 2020.In this process,synergy and size borrowing respectively account about 15% at the role of a partial intermediary variable.Through the examination and analysis of the mechanism,the "preferred link" of enterprises and the "preferred aggregation" of population endow synergy and size borrowing with the status of "intermediary",which links urban network externalities and urban competitiveness,and makes them fit in the partial intermediary mechanism that urban network externalities affect the development of urban competitiveness.(4)With the positive influence of network externality,the competitiveness of major cities in China shows positive spatial spillover.The competitiveness of cities has positive spatial autocorrelation.The "high-high" aggregation of competitiveness occurs in central and eastern major cities,and the competitiveness of western and northeastern major cities presents "low-low" aggregation.Different spatial weight matrices robustly show that urban network externalities,as the core explanatory variable,can promote the spatial spillover of urban competitiveness.The result of effect decomposition shows that urban network externality of the city itself contributes 70% to the improvement of its competitiveness.The indirect effect of network externality of other cities accounts for 30%.These results manifest that the major source to achieve external economy is to take the initiative in embedding urban network.