How resource industry spatial agglomeration affects regional economic growth: Evidence from China

To investigate how spatial heterogeneity affects the so-called “resource curse” in China, we combine a careful selection of indicators with the concept of resource industry spatial agglomeration (RISA) as a proxy for resource abundance and dependency. To address RISA heterogeneity among regions, those lacking a spatial concentration in non-resource industries are excluded from the analysis. We then develop an econometric model of regional economic growth (REG) using RISA. To further investigate the impact mechanisms of RISA and other factors influencing REG, we use the feasible generalized least squares (FGLS) method and the system generalized method of moments (SGMM). Conducting a stepwise regression analysis, we systematically examine the effect of the resource curse at the regional level from a RISA perspective. Our key findings are as follows: ① Fifteen provinces in China exhibit RISA, and their level of economic development is significantly lower than that of provinces without a spatial agglomeration of resource industries. ② RISA and REG exhibit a “U-shaped” relationship, characterized initially by suppression followed by promotion. ③ In terms of transmission mechanisms, investments in material and human capital, the degree of openness to foreign trade, and residents’ savings rate all suppress RISA, while investments in technological innovation, development of the private economy and the manufacturing industry, and government intervention can promote spatial agglomeration of resource industries.