Public services and agglomeration effect under spatial structure: Threshold verification on the provincial capital cities in China
Mei-Qi Li, Ziyan Li, Wei Zhang, Zehao Wang, Yong Zhang
TL;DR
This paper studies how public service spending affects economic agglomeration in Chinese provincial capitals, considering different spatial structures.
Contribution
The study introduces a spatial structure perspective to analyze the influence mechanism of public service expenditure on agglomeration effects.
Findings
Public service expenditure scale and structure positively influence agglomeration effects.
In monocentric areas, public service expenditure structure impacts agglomeration during urban scale changes.
In polycentric areas, public service expenditure in secondary cities affects agglomeration.
Abstract
This paper explains the relationship between public services expenditure and agglomeration economy from the perspective of spatial structure, considering that the allocation of public service expenditure by local governments does not fully leverage the benefits of agglomeration effects. We constructed a general equilibrium model that examines the close relationship between public service expenditure and agglomeration effect. From a spatial structure perspective, regions are categorized into monocentric and polycentric spatial structures. We discussed the scale of urban expansion and the level of public service expenditure in secondary cities across these different types of spatial structures. It was examined 31 provincial capitals of China as research samples to validate the applicability of theoretical mechanism analysis. Six models were constructed using 2S-GMM to investigate the…
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Taxonomy
TopicsFiscal Policy and Economic Growth · Regional Economics and Spatial Analysis · Local Government Finance and Decentralization