DefinePK

Abstract

This study looks at the effects of agglomeration economies on growth of labor productivity and its components at four specific reasons for this growth Technological change, technological catch-up, physical and human capital accumulation. These are examined using data for Chinese provincial region-level during 1993-2009. It appears that agglomeration of economic activities of non-agricultural sectors has had beneficial spillover effects in improving regional TFP growth and its four components over the period of the study. Furthermore, empirical tests indicate that the agglomeration of non-agricultural sectors accelerate productivity growth through physical capital accumulation and technological catch-up.