Impact of Industrial Agglomeration on Total Factor Productivity of Cities: A Case Study of the Beijing-Tianjin-Hebei Region

Using the panel data of 13 cities in Beijing-Tianjin-Hebei region for 2003-2016 years, this paper constructs a spatial measurement model based on three different spatial weights and studies the evolution of the spatial pattern of industrial agglomeration in this region, and the impact of industrial agglomeration on total factor productivity (TFP) of cities. The main conclusions are as follows: (1) The spatial pattern of manufacturing agglomeration spreads from the surrounding areas of Beijing to the southeast of Beijing and the central and southern regions of Hebei province; the spatial pattern of agglomeration of Productive Service Industry has gradually spread from the central and southern regions of Hebei and Beijing to the northern part of Hebei. (2) The estimation results based on the three spatial weighting matrices consistently show that manufacturing agglomeration has a significant negative impact on TFP in this region; On the contrary, Productive Service Industry have a significant positive impact on it. However, the degree of Co-agglomeration is significantly negative. (3) In the aspect of space spillover effect, there is a significant spatial correlation in the TFP, that is, the increase of urban economic efficiency in this region will affect the surrounding cities through spillover effect.