Economic spillover effect of circulation industry development in China provincial cities

Purpose: The study aims to delve into the specific mechanisms through which the development of the circulation industry in provincial capital cities influences and promotes economic growth in surrounding non-capital cities under the framework of the strong provincial capital strategy. By conducting empirical analysis, this research aims to uncover the spillover effects of circulation industry development and its heterogeneous characteristics under different geographical, spatial, and economic conditions, providing empirical evidence for understanding the interactive relationships between regional economies. Design/methodology/approach: This study employs the method of constructing an empirical analysis model, integrating multidimensional perspectives such as geographical zoning, spatial distance, and economic characteristics, to systematically examine the spillover effects of circulation industry development. By collecting and processing data on economic growth and circulation industry development in provincial capital cities and their surrounding non-capital cities, econometric tools are utilized to conduct regression analysis. Additionally, robustness checks and endogeneity treatments are employed to ensure the reliability and accuracy of the study's conclusions. Findings: The vigorous development of the circulation industry in provincial capital cities has a significant and positive spillover effect on economic growth in surrounding non-capital cities, and this conclusion remains stable under multi-dimensional tests. Furthermore, it reveals the heterogeneous manifestations of the spillover effect under different geographical, spatial, and economic conditions. Notably, the study finds that the correction of capital misallocation plays a crucial role in this process, providing a new perspective for understanding the internal mechanisms of how the circulation industry promotes economic growth. Research limitations: Despite the efforts made in data collection and analysis, this study still has certain limitations. Firstly, the comprehensiveness, timeliness, and accuracy of the data may be affected by differences in regional and industry statistical standards, limiting the precision of the study's conclusions. Secondly, the sample selection may not fully represent the actual situation in all regions, resulting in limited universality of the study's conclusions. These limitations suggest that future research needs to further expand data sources and improve data quality to enhance the broad applicability of the study's conclusions. Practical implications: This study has practical significance for understanding the mechanisms of regional economic interaction and formulating relevant policies. The research conclusions indicate that optimizing the layout of the circulation industry in provincial capital cities can effectively promote efficient resource allocation, drive economic development in surrounding areas, and achieve balanced and sustainable regional economic growth. This finding provides vital reference for policymakers, facilitating the formulation of more precise and effective regional economic development strategies. Additionally, it contributes to expanding the job market and enhancing overall social welfare levels. Originality/value: This study enriches the theoretical framework of regional economic interaction and growth spillover, offering new research perspectives and empirical evidence to the academic community. At the practical level, the research conclusions provide valuable reference information for policymakers, guiding the formulation and implementation of regional economic development plans. Furthermore, this study emphasizes the crucial role of capital misallocation correction in the process of the circulation industry promoting economic growth, offering new insights and directions for research in related fields. Keywords: Provincial Capital city, Circulation Industry, Economic Growth, Spillover Effect
Introduction Due to China's economy's rapid expansion and the country's expanding urbanization, the problem of uneven regional economic development--particularly the disparities in economic growth between cities at different economic levels--has [...]