Spatial structure and labour productivity: Evidence from prefectures in China
- Sage 2019
- Vol 56, Issue 8, 2019 : (1516-1532 p.)
This paper examines the effect of spatial structure, as measured on the monocentricity–polycentricity dimension, on labour productivity at the prefectural level in China. Using pooled cross-sectional and instrumental variable techniques, we find that, all else being equal, prefectures with a more monocentric spatial structure have a higher labour productivity, robust to different specifications. Furthermore, large agglomeration economies may fuel the beneficial effects of monocentricity. We conclude that, in terms of economic performance, monocentric-oriented spatial strategy could be a better choice for Chinese prefecture-scale regions.
agglomeration economies economic performance China