Spatial spillover effects of capital factor agglomeration on the urban industrial structure upgrading in China: Based on panel data of 284 prefecture-level cities

The spatial agglomeration of capital factors has become an important force affecting regional economic development and industrial structure. Investigating the spatial relationship of capital factor agglomeration is a key way to accelerate the upgrading of urban industrial structure and realize sustainable development. Based on the panel data of 284 cities in China from 2008 to 2017, we use the theoretical framework of spatial econometrics and estimate the spatial effects of capital factor agglomeration on the upgrading of urban industrial structure. Both the global Moran index and the local Moran scatter chart present that the agglomeration of capital factors and the upgrading index of urban industrial structure shows the characteristics of spatial agglomeration. The results reveal that the agglomeration of capital factors can significantly promote the upgrading of the industrial structure of local and surrounding cities. Still, the spatial spillover effect is not significant. We then explore the possible factors that limit the spatial spillover effects of capital agglomeration. Using the results of the paper, we provide policy suggestions for strengthening urban industrial construction and optimizing the urban governance model.