Homestead reduction, economic agglomeration and rural economic development: evidence from Shanghai, China

PurposeThe contradiction of construction land in economically developed regions is becoming more prominent, and the scale of construction land in some large cities is close to the ceiling. Therefore, China implemented the policy of construction land reduction in 2014. The main objective is to optimize the stock of homesteads and then help to realize rural revitalization by transferring land indexes across regions. Shanghai took the lead in implementing the reduction policy in 2014, for which reduction acceptance data are available. Thus, this paper evaluates the impact of homestead reduction on rural economic development based on data from towns in Shanghai.Design/methodology/approachThis paper uses the difference-in-difference (DID) model to analyze the policy effects of homestead reduction on rural residents' income and industrial integration development. Using economic agglomeration (EA) as a mediating variable, the authors explore how homestead reduction (HR) promotes EA to drive rural economic development and analyze the impact of geographic location and government investment.FindingsHR significantly promotes rural economic development and shows a significant cumulative effect. In the long run, HR can improve rural residents' income and promote industrial integration by promoting EA. The positive effect of HR and EA in suburban regions on industrial integration development is gradually increasing. However, the incentive effect on rural residents' income is weakening. The positive mediating effect of EA is significantly higher in regions with low government investment than in regions with high government investment.Originality/valueThis paper contributes to testing the impact of HR policy on rural economic development and can provide a reference for other regions aiming to implement reduction policy.

Going Green or Going away? A Spatial Empirical Examination of the Relationship Between Agglomeration and Green Total-Factor Productivity in the Context of the Carbon Emissions Peak

In the context of carbon emissions peak, environmental issues highlight the importance of the green economy, how does economic agglomeration release growth potential and enable the coordinated development of the economy and environment? There are few works of literature to analyze it within the framework of spatial economy. This paper constructs a theoretical model to clarify the influence mechanism of economic agglomeration on green total factor productivity (GTFP), and then uses a dynamic SDM model to test the theoretical hypothesis. This contribution has three main findings. First, there is a "U-shaped" curve relationship between economic agglomeration and GTFP, and the formation mechanism is that economic agglomeration has a threshold effect on the agglomeration externalities such as infrastructure sharing, knowledge spillover, and labor market upgrading. Second, the mismatch of industrial structure is an important reason that the economic agglomeration in this region has not produced an obvious spatial spillover effect on other regions; Relaxing restrictions on the concentration of economic activity to regional centers would contribute to the improvement of GTFP. Third, GTFP has the classic "snowball effect" in the time dimension, but has the obvious "warning effect" in the space and time dimension. Based on this, this paper believes that at the present stage, it is necessary to adapt to the layout of economic geography, promote the rational allocation of human resources in the territorial space, promote the coordination between economic agglomeration and the development goal of green economy, and at the same time, it is necessary to cultivate the cooperative linkage mechanism of green economy development and transformation among cities.

Path of Smart Servitization and Transformation in the Textile Industry: A Case Study of Various Regions in China

This study uses 31 provinces and municipalities from China’s textile industry as a research sample and divides the region into four geographical areas: eastern, central, western, and northeastern. It quantified smart servitization in the textile industry using input–output data and applied the fuzzy set qualitative comparison analysis to identify potential pathways for promoting smart servitization in the textile industry. The study’s findings indicate that there are significant geographical differences in the level of smart servitization in the textile industry across China. Moreover, the transformation and development of the textile industry require the co-operation of numerous factors, and the Chinese textile industry’s transformation paths can be summarized as “high-input” path, “technology—aggregation” path, “open” path, and “economic-agglomeration” path.

Trends towards Coordination between Grain Production and Economic Development in China

Accurately understanding the relationship between grain production and economic development is of great practical significance for ensuring national food security and coordinating inter-regional economic development. Using 2012 counties as research units, we analyzed the spatial coordination between grain production and economic development in China using the coupling of grain and economy (CGE) index, as well as the curve of gravity center and thematic map series methods based on statistical data from counties between 2000–2017. The results showed that: (1) Grain production was weakly coordinated with the economic development in China; but this coordination was enhanced. (2) China’s conversion between various types of grain production and economic development mainly occurred in the central and western regions, which are characterized by a much higher grain agglomeration level than the economic agglomeration level. (3) The northeastern region was prone to the grain agglomeration, the central and western regions were characterized by a grain-economy balance and the eastern region was dominated by economic agglomeration. (4) The increase of China’s CGE gradually increased from the southwest to northeast. Therefore, we proposed that the government should pay more attention to grain circulation in the eastern region and main grain-producing areas in central region should develop an accurate benefit compensation system, support leading grain processing enterprises and implement cultivated land protection policies in order to ensure national food security.

Analisis Aglomerasi Pada Koridor Ekonomi di Indonesia

Economic development that tends to be centered on developed regions causes a spatial concentration of economic activity. One of the efforts to build growth centers in each corridor, the Master Plan for the Acceleration of Expansion of Indonesian Economic Development (MP3EI) divides Indonesia into six economic development corridors. The purpose of this study is to determine the level of economic agglomeration in each economic corridor in Indonesia, and to analyze the determinants of economic agglomeration in these corridors. This type of research data uses secondary data consisting of time series data for 2010-2019 and cross section data of six economic corridors in Indonesia. Data analysis using Herfindahl-Hirschman Index and Panel Data Regression. The results of this study are that the regional government budget has a significant and positive effect on economic agglomeration in economic corridors in Indonesia. The number of workers has a significant and negative relationship to economic agglomeration. Meanwhile, investment does not have a significant positive effect on economic agglomeration in economic corridors in Indonesia. Keywords: Economic Agglomeration, Regional Government Budget, Investment, Herfindahl-Hirschman Index, Panel Data Regression.