Geographical distance, spatial dependencies and spillovers: An analysis of market potential in China
Abstract
Abstract: In this study, exploratory spatial data analysis techniques are employed to analyse the effects of spatial dependencies and spillovers influenced by geographical distance in Chinese regions during the period 2004-2014. A market potential measure is used to capture the effects based on different spatial weight matrices. Strong patterns of global and local spatial dependencies in market potential are found throughout the study period, and the strength of spatial dependencies varies with geographical distance. The results also show that market potential had a positive influence on regional economic growth and that the spatial scope of intensive spillovers is within 800 kilometres.
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