Yousong Wang, Yao Yao, Yangbing Zhang, Boya Su, Tongyuan Wu
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Impact of industrial agglomeration on total factor productivity in the construction industry: evidence from China
Abstract Industrial agglomeration (IA), a common industrial phenomenon, has been verified to have a significant impact on total factor productivity (TFP) in many industries. However, the impact of IA on TFP is seldom investigated in the construction industry, despite the existence of the industrial agglomeration phenomenon in the construction industry. As such, this study aims to probe into the impact of IA on TFP in the construction industry, so as to provide new insights into the industry development and improvement of TFP in the construction industry. Based on the competing results of the agglomeration effect and congestion effect caused by IA, this study proposed three hypotheses on the impact mechanism of IA on TFP in the construction industry. Then, the non-linear regression model and linear regression model were developed to test the hypotheses based on the provincial panel data from 2002 to 2017 in China. The empirical results reveal that IA has a positive linear impact on TFP in the construction industry, and the impact of IA on TFP in the Chinese construction industry during the observed period is in the embryonic stage. Besides, both the firm scale and economic development level have positive impacts on TFP, whereas the specialization structure has a negative impact. Hence, the government can encourage industrial agglomeration in the construction industry to enhance TFP, in order to leverage the knowledge spillovers, labor pool, and other benefits from IA.
期刊介绍：
Construction Management and Economics publishes high-quality original research concerning the management and economics of activity in the construction industry. Our concern is the production of the built environment. We seek to extend the concept of construction beyond on-site production to include a wide range of value-adding activities and involving coalitions of multiple actors, including clients and users, that evolve over time. We embrace the entire range of construction services provided by the architecture/engineering/construction sector, including design, procurement and through-life management. We welcome papers that demonstrate how the range of diverse academic and professional disciplines enable robust and novel theoretical, methodological and/or empirical insights into the world of construction. Ultimately, our aim is to inform and advance academic debates in the various disciplines that converge on the construction sector as a topic of research. While we expect papers to have strong theoretical positioning, we also seek contributions that offer critical, reflexive accounts on practice. Construction Management & Economics now publishes the following article types: -Research Papers -Notes - offering a comment on a previously published paper or report a new idea, empirical finding or approach. -Book Reviews -Letters - terse, scholarly comments on any aspect of interest to our readership. Commentaries -Obituaries - welcome in relation to significant figures in our field.
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