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CORE INDUSTRY AGGLOMERATION OF DIGITAL ECONOMY AND GREEN TOTAL FACTOR PRODUCTIVITY: EVIDENCE FROM CHINA

Li, Ping

Abstract

With the advent of the information age and the development of network technology, the digital economy with digital knowledge and information as crucial production factors has become the core driving force for high-quality green economic and social development. This paper took the exploration of the role of the digital economy as an engine for regional green and high-quality development as the purpose of the study, incorporates the core industry agglomeration of the digital economy into the analysis framework of green total factor productivity (GTFP), depicted the characteristics of GTFP change from the dual dimensions of direct and indirect effects, and analyzed the spatial effects of specialized and diversified digital economy’s core industry agglomeration on the impact of GTFP using data and spatial measurement models of 25 provincial-level regions in China from 2003 to 2019. Results show that both the specialized digital economy’s core industry agglomeration and the diversified digital economy’s core industry agglomeration can significantly improve GTFP, and both have significant spatial spillover effects. At the same time, the impact of the digital economy’s core industry agglomeration on GTFP is spatial heterogeneity. GTFP in the eastern region can be significantly enhanced by the digital economy’s core industry agglomeration, and the specialized digital economy’s core industry agglomeration has a significant negative spillover effect on GTFP in the eastern region. In the contrast, GTFP in the mid-western region can be significantly enhanced only by the specialized digital economy’s core industry agglomeration, and the digital economy’s core industry agglomeration has no significant spatial spillover effect on GTFP in the mid-western region. The obtained conclusions reveal that each region should reasonably establish a cluster model of core industries in the digital economy to facilitate the green development of the regional economy.

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40 2022, XXV, 4 Economics 10.15240/ ul/001/2022-4-003 CORE INDUSTRY AGGLOMERATION OF DIGITAL ECONOMY AND GREEN TOTAL FACTOR PRODUCTIVITY: EVIDENCE FROM CHINA Ping Li1, Huiying Fu2, Yueyao Li3 1 Hubei Uni e si y o Technology, School o Economics and Managemen , Depa men o In e na ional Economics, China, ORCID: 0000-0002-5378-6188, [email p o ec ed]; 2 Hubei Uni e si y o Technology, School o Economics and Managemen , Depa men o In e na ional Economics, China, ORCID: 0000-0002-5154-6164, [email p o ec ed]; 3 Hubei Uni e si y o Technology, School o Economics and Managemen , Depa men o Accoun ing, China, ORCID: 0000-0002-1313-5612, 20191[email p o ec ed]. Abs ac : Wi h he ad en o he in o ma ion age and he de elopmen o ne wo k echnology, he digi al economy wi h digi al knowledge and in o ma ion as c ucial p oduc ion ac o s has become he co e d i ing o ce o high-quali y g een economic and social de elopmen . This pape ook he explo a ion o he ole o he digi al economy as an engine o egional g een and high-quali y de elopmen as he pu pose o he s udy, inco po a es he co e indus y agglome a ion o he digi al economy in o he analysis amewo k o g een o al ac o p oduc i i y (GTFP), depic ed he cha ac e is ics o GTFP change om he dual dimensions o di ec and indi ec e ec s, and analyzed he spa ial e ec s o specialized and di e si ied digi al economy’s co e indus y agglome a ion on he impac o GTFP using da a and spa ial measu emen models o 25 p o incial-le el egions in China om 2003 o 2019. Resul s show ha bo h he specialized digi al economy’s co e indus y agglome a ion and he di e si ied digi al economy’s co e indus y agglome a ion can signi ican ly imp o e GTFP, and bo h ha e signi ican spa ial spillo e e ec s. A he same ime, he impac o he digi al economy’s co e indus y agglome a ion on GTFP is spa ial he e ogenei y. GTFP in he eas e n egion can be signi ican ly enhanced by he digi al economy’s co e indus y agglome a ion, and he specialized digi al economy’s co e indus y agglome a ion has a signi ican nega i e spillo e e ec on GTFP in he eas e n egion. In he con as , GTFP in he mid-wes e n egion can be signi ican ly enhanced only by he specialized digi al economy’s co e indus y agglome a ion, and he digi al economy’s co e indus y agglome a ion has no signi ican spa ial spillo e e ec on GTFP in he mid-wes e n egion. The ob ained conclusions e eal ha each egion should easonably es ablish a clus e model o co e indus ies in he digi al economy o acili a e he g een de elopmen o he egional economy. Keywo ds: Digi al economy, co e indus y agglome a ion, g een o al ac o p oduc i i y, high- quali y g een de elopmen , spa ial Du bin model. JEL Classi ica ion: L16, Q01. APA S yle Ci a ion: Li, P., Fu, H., & Li, Y. (2022). Co e Indus y Agglome a ion o Digi al Economy and G een To al Fac o P oduc i i y: E idence om China. E&M Economics and Managemen , 25(4), 40–57. h ps://doi.o g/10.15240/ ul/001/2022-4-003 In oduc ion In ecen yea s, he wa e o digi aliza ion has swep he wo ld, and he digi al economy, a new economic o m, has eme ged and become an impo an d i ing o ce o ans o ma ion and upg ading, as well as he high poin o a new EM_4_2022.indd 40 7.12.2022 10:55:52 41 4, XXV, 2022 Economics ound o indus ial compe i ion among coun ies a ound he wo ld. In pa icula , he COVID-19 ou b eak in 2020, while gi ing he adi ional manu ac u ing indus y a conside able impac and posed se e e challenges o economic de elopmen a ound he wo ld. I has u he highligh ed he ole o he engine o he digi al economy and made i a key d i ing o ce o he global economic eco e y and he de elopmen o he wo ld economy (S eine , 2019). Fo China, on he one hand, a e yea s o apid de elopmen , he adi ional kine ic ene gy o he na ional economy con inues o weaken and can no longe o ce ully pull he economy o soa , so i is u gen o ind new economic g ow h kine ic ene gy; on he o he hand, he ex ensi e adi ional pa e n o economic g ow h emphasizes quan i y, igno es quali y and low e iciency, which causes was e o esou ces and also b ings se e e en i onmen al p oblems. The imbalance be ween economic de elopmen and ecological en i onmen al p o ec ion needs o be sol ed u gen ly. The concep o g een de elopmen o lead o high-quali y economic de elopmen has become he key o sol ing he p oblem. I is wo h men ioning ha digi al echnologies such as In o ma ion and Communica ion Technologies (ICTs), which can imp o e ene gy e iciency (Rod iguez-Lluesma e al., 2021; Usman e al., 2021), we e desc ibed by he Sus ainable De elopmen Goals (SDGs) as enable s o sus ainable de elopmen (Lu e al., 2020; Zhang e al., 2021). Mo eo e , as a new d i ing o ce o economic de elopmen , he digi al economy ook ICTs as he co e o p o iding new impe us o en i onmen al imp o emen . Schola s ound ha he popula i y o he digi al economy in he ield o ene gy consump ion and en i onmen al p o ec ion was conduci e o sol ing p oblems such as declining en i onmen al ca ying capaci y and sca ci y (Junio e al., 2018; Rehman e al., 2021). The digi al economy has g ea po en ial o imp o e he ecological en i onmen (Alam & Mu ad, 2020) by con inuously educing emissions o pollu an s such as ca bon dioxide (Nizam e al., 2020), sul u dioxide (Yang e al., 2021), and indus ial was ewa e (Sun e al., 2022) h ough inno a ion o g een echnologies, upg ading o indus ial s uc u e and imp o emen o he e iciency o en i onmen al managemen . The e o e, he de elopmen o he digi al economy was in line wi h he concep o g een de elopmen . The digi al economy had a posi i e impac on high-quali y economic de elopmen , inno a i e de elopmen , and g een de elopmen (Yang e al., 2022). In his con ex , he mechanism o he digi al economy d i ing high-quali y economic de elopmen had undoub edly become he ocus o academic a en ion. Li e al. (2022) poin ed ou ha echnological inno a ion was an impo an way o he digi al economy o imp o e he e iciency le el o he g een economy. Wang e al. (2022) u he imp o ed he impac pa h o he digi al economy on high-quali y economic de elopmen based on he o me , belie ing ha indus ial es uc u ing was also one o he essen ial in e media y mechanisms o he digi al economy o p omo e high-quali y g een de elopmen di ec ly. Ma and Zhu (2022) sha ed he same iew and a gued ha he digi al economy could in luence high-quali y g een de elopmen in he su ounding a ea h ough spa ial spillo e e ec s. While Ren e al. (2022) a gued om u ban clus e s wi h di e en le els o digi al economy de elopmen ha digi al economy indus y agglome a ion a ec ed g een inclusi e g ow h h ough ene gy consump ion, en i onmen al pollu ion, economic g ow h, human capi al, indus ial s uc u e, and echnological p og ess. In he con ex o China’s adhe ence o he concep o g een de elopmen and p omo ion o high-quali y economic de elopmen , he digi al economy had become a signi ican de elopmen end in he new e a o i s g een bene i s. A he same ime, o u he measu e he le el o high-quali y g een de elopmen , schola s p oposed he indica o o he g een o al ac o p oduc i i y by comp ehensi ely conside ing economic g ow h, ene gy consump ion, and en i onmen al pollu ion, and used i as an essen ial basis o e alua ing o ganic coo dina ion be ween he le el o g een de elopmen and quali y o economic de elopmen . Th ough he s udy o g een o al ac o p oduc i i y, i was ound ha in e ne g ow h (Li e al., 2020) and digi al echnologies ep esen ed by ICTs (Hao e al., 2022) could con ibu e o g een o al ac o p oduc i i y. In addi ion, he de elopmen o he digi al economy migh be accompanied by agglome a ions o indus ies ela ed o he digi al economy, which could con ibu e o he in ensi ica ion and scale de elopmen o he agglome a ion a ea. This agglome a ion p ocess migh also EM_4_2022.indd 41 7.12.2022 10:55:52 42 2022, XXV, 4 Economics be accompanied by economic phenomena such as he en i e low o labo and capi al, echnological inno a ion, and en e p ise compe i ion, which in u n would b ing abou changes in he in ensi y o social esou ce consump ion, inpu -ou pu e iciency, and en i onmen al quali y. Then i led o changes in egional g een o al ac o p oduc i i y. The e o e, his pape aims o explo e he ole o digi al economy as an engine o egional g een and high quali y de elopmen . By s udying he ela ionship be ween he digi al economy’s co e indus y agglome a ion and g een o al ac o p oduc i i y, he engine d i ing ole o co e indus ies in he digi al economy o high-quali y economic de elopmen is u he explo ed. This is o g ea p ac ical signi icance o u he p omo ing he de elopmen o economic digi al ans o ma ion and high-quali y g een socio- economic in he new e a. The no el ies and con ibu ions o his s udy a e as ollows. (1) Based on he pe spec i e o indus ial agglome a ion, his s udy clea ly de ines he conno a ion and ex ension o co e indus ies in he digi al economy, and he impac mechanisms o di e en co e indus ies in he digi al economy on g een o al ac o p oduc i i y we e analyzed, which p o ides a new pe spec i e o p omo ing high-quali y g een de elopmen o he egional economy h ough he de elopmen o he digi al economy. (2) This s udy ully conside s coo dina ed de elopmen be ween economic g ow h, ene gy u iliza ion, and en i onmen al p o ec ion. The EBM (Epsilon Based Measu e) model was used o cons uc mul i-dimensional and mul i-le el p o incial g een o al ac o p oduc i i y including non-desi ed ou pu , o comp ehensi ely and sys ema ically measu e he le el o high-quali y g een de elopmen o each egion’s economy. (3) The spa ial Du bin model was used o empi ically examine he impac o di e en digi al economy’s co e indus y agglome a ion models on g een o al ac o p oduc i i y. I u he explo es he spa ial e ec s o he digi al economy’s co e indus y agglome a ion on g een o al ac o p oduc i i y while s udying di ec e ec s. I gi es as di e ences in geog aphic loca ion ac oss China’s p o inces. The es o his s udy is a anged as ollows. Sec ion 1 e iews he li e a u e on he co e indus y agglome a ion o he digi al economy a ec ing o al g een ac o p oduc i i y and p oposes hypo heses. Sec ion 2 in oduces da a indica o s and measu emen models used in his s udy. Sec ion 3 is empi ical analysis, which ob ains he esul s o empi ical esea ch. Sec ion 4 is he conclusions o his s udy, which pu s o wa d manage ial implica ions. 1. Li e a u e Re iew and Hypo hesis De elopmen G een o al ac o p oduc i i y is a g een de elopmen indica o ha conside s economic g ow h, esou ce conse a ion, and en i onmen al p o ec ion and comp ehensi ely e alua es he quali y o economic g ow h. The agglome a ion o s a egic eme ging indus ies ep esen ed by he digi al economy’s co e indus y has an ob ious spa ial spillo e e ec on g een economic e iciency (Zeng e al., 2020). A he same ime, he impac o di e en indus ial agglome a ion me hods on g een de elopmen migh di e . In his ega d, his s udy ocuses on he wo indus ial agglome a ion modes o specializa ion and di e si ica ion. I illus a es he impac pa h o he digi al economy’s co e indus y agglome a ion on g een o al ac o p oduc i i y based on di ec and spillo e e ec s b ough by indus ial agglome a ion om he pe spec i e o spa ial associa ion. 1.1 The Di ec E ec o he Co e Indus y Agglome a ion o Digi al Economy on In e p o incial G een To al Fac o P oduc i i y Acco ding o MAR (Ma shall-A ow-Rome ) ex e nali y heo y, and Jacobs’s ex e nali y heo y, he digi al economy’s co e indus y agglome a ion mainly ac ed on o al g een ac o p oduc i i y h ough economies o scale, echnology, and indus ial s uc u e e ec s. I a ec ed g een o al ac o p oduc i i y o some ex en . F om he pe spec i e o scale e ec , he specialized digi al economy’s co e indus y agglome a ion could ealize common u iliza ion o public in as uc u e, in e media e commodi ies, and labo esou ces in he agglome a ion a ea by he co e en e p ises o he same digi al economy. Signi ican ly i educed ansac ion cos s, sea ch cos s, and p oduc ion cos s while imp o ing he e iciency o public esou ce u iliza ion. A he same ime, gi en he wide applica ion o digi al p oduc s and echnologies in o he indus ies, he specialized EM_4_2022.indd 42 7.12.2022 10:55:52 43 4, XXV, 2022 Economics digi al economy’s co e indus y agglome a ion would p omo e specialized agglome a ion o o he indus ies wi h indus ial connec ions, and u he , i exe ed scale economy h ough he sha ing mechanism. F om he pe spec i e o echnical e ec , he digi al economy’s co e indus y agglome a ion would cause a signi ican accumula ion and low o digi al alen s and in o ma ion in he agglome a ion a ea. Specialized indus ial agglome a ion could p omo e dissemina ion and mu ual lea ning o knowledge and echnology be ween en e p ises in he indus y so ha en e p ises could lea n om each o he ’s s eng hs and cons an ly imp o e hei echnologies and p oduc s. Di e si ied indus ial agglome a ion could b ing abou knowledge collisions be ween di e en ields, and p omo e he c oss-bo de in eg a ion and complemen a i y o knowledge and echnology be ween indus ies. The diges ion and abso p ion o in eg a ed inno a ion u he p omo ed wide applica ion and spa ial di usion o echnological inno a ion (Du an on e al., 1999). F om he pe spec i e o clean echnology, indus ial agglome a ion could p omo e he in e ac ion, sha ing, and dissemina ion o ene gy-sa ing in o ma ion and clean echnologies among en e p ises (Wang e al., 2021; Xie e al., 2019). Spillo e e ec s o clean echnologies and knowledge could con ibu e o en i onmen al echnology inno a ion, he eby imp o ing g een o al ac o p oduc i i y. In addi ion, he specialized digi al economy’s co e indus y agglome a ion p omo ed he o ma ion o compe i i e ela ions be ween en e p ises in he agglome a ion a ea, which made en e p ises in he indus y con inue o ca y ou echnological inno a ion and consciously ul ill social esponsibili ies such as en i onmen al p o ec ion o enhance hei ma ke compe i i eness. Finally, inno a i e digi al echnologies and digi al p oduc s b ough by specialized digi al economy’s co e indus y agglome a ion and di e si ied digi al economy’s co e indus y agglome a ion would be u he applied o o he indus ies associa ed wi h hem. G een o al ac o p oduc i i y would be comp ehensi ely imp o ed by imp o ing esou ce u iliza ion e iciency and ene gy u iliza ion e iciency o o he indus ies. F om he pe spec i e o he indus ial s uc u e e ec , on he one hand, he digi al economy’s co e indus y agglome a ion would p omo e he de elopmen o he digi al economy i sel . Meanwhile, in he p ocess o in eg a ing he digi al economy and he eal economy, i would p omo e he upg ading o he indus ial s uc u e by di ec ly in luencing he use and alloca ion o esou ce elemen s such as human capi al and scien i ic and echnological inno a ion (Liu & Chen, 2021). On he o he hand, echnological inno a ion b ough by he digi al economy’s co e indus y agglome a ion would u he p omo e digi al indus ializa ion and indus ial digi aliza ion and hen p omo e he upg ading o indus ial s uc u e. Since economic s uc u e a ec ed economic g ow h, ene gy demand, and en i onmen al oo p in s (Ahmed e al., 2022), upg ading he indus ial s uc u e b ough by co e indus ies in he digi al economy would p omo e g een and low-ca bon de elopmen . Based on he abo e analysis, his s udy p oposes he ollowing hypo hesis: H1: Specialized digi al economy’s co e indus y agglome a ion and di e si ied digi al economy’s co e indus y agglome a ion can imp o e g een o al ac o p oduc i i y in he egion. 1.2 The Spillo e E ec o he Co e Indus y Agglome a ion o Digi al Economy on he P o incial G een To al Fac o P oduc i i y While he digi al economy’s co e indus y agglome a ion a ec ed local g een o al ac o p oduc i i y, i migh also ha e an impac on g een o al ac o p oduc i i y in neighbo ing egions due o i s spa ial ele ance. Tha is, he e was a spa ial spillo e e ec . F om he pe spec i e o spa ial ele ance o he digi al economy, he e was a signi ican spa ial co ela ion o digi al economy de elopmen be ween egions (Li & Liu, 2021; Wang e al., 2022). The de elopmen o he local digi al economy would a ec he de elopmen o he digi al economy in neighbo ing egions. The co e indus y agglome a ion o he digi al economy would p omo e he de elopmen o he local digi al economy because o i s economies o scale and echnical e ec s, and i would also a ec he de elopmen le el o he digi al economy in neighbo ing a eas h ough he spa ial ele ance o he digi al economy and ul ima ely a ec he g een o al ac o p oduc i i y o neighbo ing a eas. EM_4_2022.indd 43 7.12.2022 10:55:53 44 2022, XXV, 4 Economics F om he pe spec i e o echnological spillo e , he digi al economy has a signi ican posi i e spa ial spillo e e ec on inno a ion e iciency and was a i al d i ing o ce o imp o ing inno a ion e iciency in China (Wang & Cen, 2022). A he same ime, he digi al economy’s co e indus y had he ad an age o o e coming spa ial es ic ions o in o ma ion echnology dissemina ion. When he digi al economy’s co e indus y eached a pa icula agglome a ion scale in he local a ea, he knowledge and echnology in e ac ion ne wo k wi hin and be ween he indus ies would be expanded acco dingly. Technological inno a ion gene a ed by he collision o local knowledge could achie e in e - egional echnology spillo e by expanding he knowledge in e ac ion ne wo k and he ba ie less dissemina ion o digi al in o ma ion and a ec ing neighbo ing egions’ g een o al ac o p oduc i i y. F om he pe spec i e o he demons a ion e ec be ween egions, he p omo ion o g een o al ac o p oduc i i y in one egion would pu neighbo ing egional go e nmen s unde p essu e om public opinion o adop simila beha io s in ene gy conse a ion and emission educ ion wo k (Zhang e al., 2019). Residen s would supe ise local go e nmen s o make policy imp o emen s by compa ing he policy beha io s o local go e nmen s. Good policies would a ac neighbo ing egions o adop simila policies o inc ease g een o al ac o p oduc i i y. The e o e, he co e indus y agglome a ion o he digi al economy could u ge neighbo ing egions o inc ease hei g een o al ac o p oduc i i y by p omo ing he imp o emen o local g een o al ac o p oduc i i y. Based on he abo e analysis, his s udy p oposes he ollowing hypo hesis: H2: Specialized digi al economy’s co e indus y agglome a ion and di e si ied digi al economy’s co e indus y agglome a ion can imp o e g een o al ac o p oduc i i y in neighbo ing a eas. 2. Me hodology 2.1 Model Design The Spa ial Lag Model (SAR), Spa ial E o Model (SEM), and Spa ial Du bin Model (SDM) a e h ee models commonly used o spa ial me ology. Compa ed wi h SAR and SEM, SDM conside s he e ec o spa ial hys e esis e ms o he independen a iable and he dependen a iable on he dependen a iable, which can be e es ima e he spillo e e ec d i en by di e en obse a ion indi iduals. Since g een o al ac o p oduc i i y (GTFP) in he egion will no only be a ec ed by he digi al economy indus y agglome a ion le el (MJ) in he egion, bu also by he digi al economy indus y agglome a ion le el and g een o al ac o p oduc i i y in he su ounding a eas. The e o e, SDM is used as a basic empi ical model in his s udy, and o he con ol a iables a e in oduced o he p oblem o a iable omission. The gene al o m o he spa ial Du bin model is shown as equa ion (1): lnGTFP = ω0 + ρWlnGTFPi + + α lnMJi + γ lnPi + βW lnMJi + + θW lnPi + μi + + εi (1) whe e: Pi is he con ol a iable; W is he spa ial weigh ma ix; ρ, β and θ a e spa ial in e ac ion e m coe icien s o he dependen , independen , and con ol a iables; α and γ ep esen he elas ic coe icien s o he independen and con ol a iables; μi and ep esen spa ial and empo al e ec s, espec i ely. To analyze he spa ial spillo e e ec o g een o al ac o p oduc i i y mo e comp ehensi ely and objec i ely, his s udy e e s o he exis ing li e a u e. I selec s a con igui y-based spa ial weigh s ma ix based on geog aphical cha ac e is ics and an economic dis ance special weigh s ma ix based on economic and social cha ac e is ics. W1 is he con igui y-based spa ial weigh s ma ix. I e lec s he spa ial connec ion be ween wo adjacen uni s (Mo on e al., 2018), whe e he elemen s on he diagonal a e 0. The o he elemen exp essions a e based on he adjacency ma ix, shown as equa ion (2): (2) whe e: i = j = 1, 2, 3, ..., n. W2 is he economic dis ance he special weigh s ma ix. Conside ing he impac o di e ences in economic de elopmen le els in di e en egions on he spa ial spillo e e ec o GTFP, his s udy bo ows he me hod o Han e al. (2018) o cons uc an economic dis ance special weigh s ma ix h ough pe capi a GDP, shown as equa ion (3): EM_4_2022.indd 44 7.12.2022 10:55:53 45 4, XXV, 2022 Economics (3) whe e: Y i and Y j a e GDP pe capi a in he sample pe iod o egion i and egion j, espec i ely. The main diagonal elemen s in he ma ix a e 0. 2.2 Va iable Selec ion and Da a Sou ce The in e p e ed a iable is g een o al ac o p oduc i i y (GTFP) by p o ince. The EBM model p oposed by Tone and Tsu su sui (2010) compensa es o he sho comings o he DEA model and SDM model o a ce ain ex en by e ec i ely combining adial and non- adial models. A he same ime, compa ed wi h he Malmquis -Luenbe ge index, he GML index o e comes he p oblem o no solu ion in he linea p og amming o ML exponen , and he calcula ion esul s a e ansi i e and cyclically accumula i e. The e o e, his s udy e e s o he me hod o Li and Wang (2022), using he EBM- GML model o measu e GTFP. In his s udy, labou , capi al, and ene gy inpu s a e chosen as inpu indica o s, and GDP and pollu ion emissions a e chosen as expec ed and unin ended ou pu indica o s espec i ely. Among hem, he o al ene gy consump ion o ene gy inpu is exp essed a e he p o inces a e con e ed in o s anda d coal. The labo inpu is measu ed by he sum o he employmen o he h ee indus ies in each p o ince. The capi al inpu is based on he physical capi al s ock o each p o ince as he agen a iable. Conce ning he indings o Shan (2008), physical capi al s ock is es ima ed using he pe pe ual in en o y me hod. The expec ed ou pu is exp essed by he o al GDP alue o each p o ince. The GDP index is used o calcula e he ac ual GDP o each p o ince based on 2000. Undesi able ou pu s a e ep esen ed by sul u dioxide emissions, gene al indus ial solid was e emissions, and indus ial was ewa e emissions. Explana o y a iables include specialized digi al economy’s co e indus y agglome a ion (Ma ) and di e si ied digi al economy’s co e indus y agglome a ion (Jacobs). Acco ding o he S a is ical Classi ica ion o Digi al Economy Indus ies and Co e Indus ies (2021) issued by China, he digi al economy indus y can be di ided in o digi al p oduc manu ac u ing (01), digi al p oduc se ice indus y (02), digi al echnology applica ion indus y (03), digi al elemen s d i ing indus y (04) and digi al e iciency imp o emen indus y (05). Among hem, he 01–04 ca ego ies a e he co e indus y o he digi al economy. Howe e , due o he ini ial colla ion o he digi al economy indus y di ision in 2021, i s a ge ed indus ial da a s a is ics ha e no ye been o med. Based on conside a ion o da a a ailabili y and s a is ical calibe consis ency, his s udy e e s o he “in o ma ion ansmission, so wa e, and in o ma ion echnology se ice indus y” classi ica ion s anda d in he High- ech Indus y (Manu ac u ing) Classi ica ion (2017) and he Na ional Economic Indus y Classi ica ion o China (GB/T 4754–2017), by compa ing a ious sub-ca ego ies o he digi al economy indus y wi h i . Finally, co e indus ies in he digi al economy a e selec ed o esea ch and di ided in o he ollowing h ee ca ego ies, namely in o ma ion ansmission, compu e se ices, and so wa e indus ies, elec onic and communica ion equipmen manu ac u ing indus ies, and compu e and o ice equipmen manu ac u ing indus ies. Based on he p ac ice o Du an on and Puga (1999), his s udy cons uc s indica o s o he specialized digi al economy’s co e indus y agglome a ion and di e si ied digi al economy’s co e indus y agglome a ion, espec i ely, shown as equa ions (4) and (5): (4) (5) Among hem, Qij ep esen s he p opo ion o he digi al economy’s co e indus y j in egion i o he o al numbe o employmen o all co e indus ies in he digi al economy in egion i. Qi is he a io o he numbe o employees in he digi al economy’s co e indus y j na ionwide and he o al numbe o employees in he co e indus ies in he na ional digi al economy. To be e in e p e he impac o he digi al economy’s co e indus y agglome a ion on GTFP, his s udy selec s in as uc u e cons uc ion (In a), o eign di ec in es men (FDI), en i onmen al egula ion (En ), human capi al (Edu), u baniza ion le el, deg ee o go e nmen in e en ion (Expend), ene gy consump ion s uc u e (Ene gy), and egional echnological inno a ion (Pa en ) as con ol a iables. Among hem, In a is measu ed by he sum o ailway mileage, oad EM_4_2022.indd 45 7.12.2022 10:55:53 46 2022, XXV, 4 Economics mileage and long-dis ance cable leng h in each p o ince. FDI is exp essed by he ac ual use o o eign di ec in es men as a p opo ion o GDP. En is measu ed by he p opo ion o in es men in indus ial pollu ion con ol o o al indus ial ou pu . Edu is measu ed by he p opo ion o s uden s en olled in o dina y colleges and uni e si ies as a p opo ion o he o al popula ion a he end o he yea . The le el o u baniza ion is exp essed as he u baniza ion a e o each p o ince. Expend is exp essed as a p opo ion o go e nmen iscal expendi u e o GDP. Ene gy is measu ed by he p opo ion o coal consump ion con e ed in o s anda d coal in o al ene gy consump ion. Pa en is exp essed in he numbe o pa en ed in en ions au ho ized. Due o a la ge amoun o missing da a in Hainan, Gansu, Qinghai, Xinjiang, Ningxia, Tibe , Hong Kong, Macau, and Taiwan, his s udy uses ele an da a om 2003 o 2019 om 25 p o inces o esea ch excep he abo e 9 p o inces. The da a a e mainly de i ed om he China S a is ical Yea book, China Ene gy S a is ics Yea book, China En i onmen al S a is ics Yea book, China High Technology S a is ical Yea book, Wind Da abase, P o incial S a is ical Yea book, P o incial S a is ical Bu eau o icial websi e, and local s a is ical bulle in. A he same ime, he missing alues a e supplemen ed by he in e pola ion me hod and linea ex ension p edic ion me hod. To educe he he e oscedas ici y, his s udy pe o ms loga i hmic ea men on all a iables, and he desc ip i e s a is ics o he a iables can be seen in Tab. 1. 3. Resul s Analysis 3.1 Spa ial Au oco ela ion Tes The p esence o absence o he spa ial au oco ela ion o p ima y a iables in he model is a p e equisi e o he abili y o model a spa ial panel. Re e ing o Geniaux and Ma ine i (2018), he Mo an index is selec ed as an index o spa ial au oco ela ion es in his s udy, o comp ehensi ely de ec spa ial dis ibu ion cha ac e is ics o he g een o al ac o p oduc i i y om pe spec i es o bo h he whole and he local. This s udy uses MaxDEA p o essional so wa e o measu e and p ocess each p o ince’s GTFP om 2004 o 2019. Then, he Mo an’s I index o he g een o al ac o p oduc i i y based on Va iable Va iable-de ini ion Mean S anda d e o Leas alue C es alue Sample alue lnGTFP G een o al ac o p oduc i i y in all p o inces −0.1443 0.2840 −1.1128 0.5644 400 lnMa Specialized indus y agglome a ion 0.7020 0.4666 0.0174 1.6402 lnJacobs Di e si ied indus y agglome a ion 0.8292 0.8593 −0.4147 5.0238 lnIn a In as uc u e cons uc ion 11.8379 0.8134 9.4389 13.0491 lnFDI Di ec in es men in auma 0.6527 0.7833 −2.2878 2.1032 lnEn En i onmen al egula ion −1.3210 0.7172 −4.0610 0.3926 lnEdu Human capi al 0.5467 0.3627 −0.7889 1.2750 lnU ban U baniza ion le el 3.9720 0.2640 3.2696 4.4954 lnExpend Go e nmen in e en ion 2.8928 0.3368 2.0691 3.6943 lnEne gy S uc u e o ene gy consump ion 3.7064 0.5308 −1.0991 4.3537 lnPa en Regional echnological inno a ion 7.7009 1.4483 4.5850 10.9978 Sou ce: own Tab. 1: Desc ip i e s a is ics o he a iables EM_4_2022.indd 46 7.12.2022 10:55:53 47 4, XXV, 2022 Economics a con igui y-based spa ial weigh s ma ix and an economic dis ance special weigh s ma ix is calcula ed by S a a 15.1 so wa e o es spa ial co ela ion o he g een o al ac o p oduc i i y unde di e en spa ial ma ices. Spa ial au oco ela ion es esul s a e shown in Tab. 2. I is no di icul o see ha when using he con igui y-based spa ial ma ix and economic dis ance special weigh s ma ix, excep o Mo an’s I index be ween 2004 and 2007, which is no signi ican and GTFP does no ha e appa en spa ial au oco ela ion. The p- alue o Mo an’s I index in he emaining yea s is less han 10%, ejec ing he null hypo hesis o andom spa ial dis ibu ion, and GTFP shows signi ican spa ial au oco ela ion in he sample. A he same ime, Mo an’s I o he g een o al ac o p oduc i i y is g ea e han 0, indica ing a posi i e spa ial co ela ion be ween GTFP in a ious p o inces. Tha is, GTFP has solid spa ial agglome a ion. To mo e in ui i ely display he local co ela ion ela ionship o he g een o al ac o p oduc i i y and e eal he spa ial co ela ion be ween he g een o al ac o p oduc i i y and neighbo ing p o inces in a ious p o inces, his s udy akes 2019 da a as an example. I d aws Mo an’s I sca e plo s based on con igui y-based spa ial weigh sma ix and economic dis ance special weigh s ma ix, as shown in Fig. 1. I can be seen ha when he con igui y-based spa ial weigh s ma ix is adop ed, mos p o inces in China a e mainly loca ed in he i s quad an (HH) and he hi d quad an (LL). The p o inces wi h highe g een o al ac o p oduc i i y ha e highe GTFP han neighbo ing p o inces. GTFP in neighbo ing p o inces wi h lowe g een o al ac o p oduc i i y is also lowe , indica ing local spa ial agglome a ion GTFP in a ious p o inces unde he spa ial p oximi y weigh . When using he economic dis ance special weigh s ma ix, mos p o inces in China a e loca ed in he hi d quad an (LL). A ew p o inces a e in he i s quad an (HH) and ou h quad an (HL), indica ing ha , GTFP in a ious p o inces has local spa ial dependence and local spa ial he e ogenei y unde he economic dis ance special weigh s weigh . Spa ial weigh s ma ix Con igui y-based Economic dis ance Yea Mo an’s IP- alue Mo an’s IP- alue 2004 0.111 0.142 0.053 0.286 2005 0.102 0.215 0.081 0.216 2006 0.137 0.139 0.037 0.445 2007 0.148 0.129 0.068 0.304 2008 0.177 0.082 0.135 0.100 2009 0.183 0.061 0.131 0.092 2010 0.174 0.068 0.210 0.013 2011 0.180 0.064 0.251 0.004 2012 0.225 0.033 0.335 0.000 2013 0.238 0.025 0.381 0.000 2014 0.271 0.011 0.416 0.000 2015 0.283 0.008 0.465 0.000 2016 0.306 0.005 0.384 0.000 2017 0.355 0.002 0.385 0.000 2018 0.319 0.004 0.438 0.000 2019 0.294 0.006 0.476 0.000 Sou ce: own Tab. 2: Mo an’s I alues o he g een o al ac o p oduc i i y om 2004 o 2019 EM_4_2022.indd 47 7.12.2022 10:55:53 48 2022, XXV, 4 Economics To de e mine he mos sui able spa ial econome ic model, his s udy uses S a a 15.1 so wa e o es he spa ial econome ic model om assump ions o he con igui y-based spa ial weigh s ma ix (W1) and he economic dis ance special weigh s ma ix (W2) espec i ely. Tes esul s a e shown in Tab. 3. F om he LM es esul s based on he o dina y linea OLS eg ession model, i can be seen ha LM-lag, LM-e o , Robus LM-lag, and Robus LM-e o in he con igui y-based spa ial weigh s ma ix all pass a leas 10% o he signi icance es , and LM-lag and Robus LM- lag in he economic dis ance special weigh s Fig. 1: Mo an’s I sca e plo o g een o al ac o p oduc i i y in 2019 Sou ce: own Inspec ion W1W2 S a is ical alue P- alue S a is ical alue P- alue LM-lag 25.028*** 0.0000 7.042** 0.0080 Robus LM-lag 16.662*** 0.0000 15.470*** 0.0000 LM-e o 11.173** 0.0010 0.878 0.3490 Robus LM-e o 2.808* 0.0940 9.306** 0.0020 Spa ial e ec s LR 34.21*** 0.0002 44.970*** 0.0000 Time e ec LR 650.640*** 0.0000 728.290*** 0.0000 Hausman es 22.270* 0.0138 50.140*** 0.0000 Wald spa ial lag 48.440** 0.0000 118.810*** 0.0000 Wald spa ial e o 50.640*** 0.0000 105.330*** 0.0000 LR spa ial lag 46.630*** 0.0000 104.210*** 0.0000 LR spa ial e o 48.470*** 0.0000 125.780*** 0.0000 Sou ce: own No e: *, **, and *** indica e s a is ical signi icance a he 10, 5, and 1% le els, espec i ely. 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