Agglomeration economy and the growth of green total-factor productivity in Chinese Industry

Analyzing what type of agglomeration economy is more conducive to the growth of industrial green total-factor productivity (GTFP) has important reference value and practical significance for the green sustainable development of Chinese industry. Based on the provincial panel data of 25 industrial industries in China from 2005 to 2017, this paper uses the meta-frontier method and the super-efficiency non-radial directional distance function to measure GTFP and its decomposition. It also uses a spatial econometric model to empirically analyze the effects of both the specialized economy and the diversified economy on GTFP and the mechanisms of action. The results show that GTFP and its decomposition have significant temporal and spatial heterogeneity. Both the specialized economy and the diversified economy have significant roles in promoting the growth of GTFP, but they have differences in degrees of effect. Among them, the industrial complementarity in the diversified economy has the strongest role in promoting the growth of GTFP. In addition, the specialized economy promotes the growth of GTFP mainly by improving technological efficiency and promoting technical progress, while the diversified economy promotes the growth of GTFP primarily by promoting technical progress and narrowing the technological gap. •The GTFP and its decomposition have been measured.•We analyze the effects of agglomeration economy on GTFP.•Agglomeration economy has significant roles in promoting the growth of GTFP.•Agglomeration economy has different mechanisms.