Land Finance, Producer Services Agglomeration, and Green Total Factor Productivity

This study explores the effect of land finance (LF) and producer services on green total factor productivity (GTFP) according to spatial and agglomeration economic theories. Then, based on the spatial Durbin model, we employ panel data of 283 Chinese cities at the prefecture level and above from 2003 to 2015 to estimate the effect of LF and producer services agglomeration on GTFP. We find that specialized agglomeration of producer services promotes the GTFP of the city and its neighboring cities. While diversified agglomeration is advantageous to the GTFP in the city, it significantly reduces in neighboring cities. LF not only improves the GTFP of the city and neighboring cities but also weakens the promotion effect of the specialized agglomeration of producer services on the GTFP of the city and surrounding cities. Furthermore, we find that there exists industry and regional heterogeneities of the effect.