Global spatial economic interaction: knowledge spillover or technical diffusion?. Issue 1 (2nd January 2020)

• Record Type: Journal Article
• Authors: Zhang, Xun; Wan, Guanghua; Li, Jing; He, Zongyue
• Is Part Of: Spatial economic analysis. Volume 15:Issue 1(2020)
• Page Start: 5
• Page End: 23
• Publication Date: 2020-01-02
• Subjects: economic interaction -- spatial weighting matrix -- knowledge spillover -- technical diffusion -- China; C21 -- O33 -- O47; Space in economics -- Periodicals; Economic geography -- Periodicals; Space in economics -- Econometric models -- Periodicals; Urbanization -- Periodicals; Espace (Économie politique) -- Périodiques; Économétrie -- Périodiques; Géographie économique -- Périodiques; Économie industrielle -- Périodiques; Économie du travail -- Périodiques; Économie urbaine -- Périodiques; Politique économique -- Périodiques; Relations économiques internationales -- Périodiques; 330.9
• DOI: 10.1080/17421772.2019.1578402
• Languages: English
• ISSNs: 1742-1772

Abstract

ABSTRACT: Two sources of economic interaction are knowledge spillover and technical diffusion. This paper proposes a structural model with spatial effect in knowledge spillover and technical diffusion and empirically estimates the sources of economic interaction. The empirical results demonstrate that economic interaction mainly comes from knowledge spillover, and the effect of technical diffusion is weak. These results appeal for special attention to be paid to enhancing the effect of technical diffusion on long-term economic growth. Moreover, the knowledge spillover effect within China is only slightly larger than that in the global setting, implying existence of barriers, particularly institutional impediments, to economic interaction in China. The findings of this paper strongly call for the removal of China's hukou system and local protectionism, which restrict factor mobility across space.