The Impact of Inter-provincial Economic Spillover on Economic Growth from the Perspective of Integration

In the context of globalization and integration, the inter-regional spillover effect has an important impact on China's economic development. The economic growth of the province is deeply influenced by the economic spillover effects from other provinces. This paper first reviews the theories of economic spillovers in development economics and new economic geography. Then, panel data from 1999 to 2019 of 31 provinces in China except Hong Kong, Macao and Taiwan were used to analyze the spatial econometric model. It is found that over the past two decades, the marginal contribution rate of economic spillover represented by market potential to economic growth exceeds that of capital, labor and other factors input. And as time goes on, the marginal contribution of market potential increases. In addition, in the analysis of the three major economic zones divided by provinces in China, it is found that the contribution of market potential to economic growth varies in different regions.