Spatial Econometrics: Uniting Spatial Analysis & Regression - Essay Sample

Introduction

Spatial econometrics is a field formed through the intersection of spatial analysis and econometrics. Econometrics is different from other several branches of statistics in focus inputs on the theoretical models whereby the use of regression analysis estimates the parameters of measurement. Through spatial econometrics, the econometrics is refined in cases where either the conceptual model covers interactions between various other units or the data observed are not entirely independent (Fan & Scott, 2003). The interactive development of clusters between the producer and the manufacturing sectors is paramount for the republic of China to break a similar dilemma in its economy. This research proposal paper will focus on the spatial econometric analysis of the relationship between China's advanced services in the production sector Industry and the regional economic growth in the country.

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Research Questions

• How is the status quo of the producer services industry in China, and how much has it advanced over the years?
• How are the regional economic growth in the country and its neighbors?
• What are the areas affected by the spatial econometric analysis in the producer services industry?
• What is the relationship between the advanced producer services industry and the country’s regional economic growth?
• What are the most evident case studies to substantiate this study?

Research Objectives

• The research aims to establish the status quo of the producer services in the country and how far it has advanced over the years.
• The research aims to analyze the position of China in regional economics and how it has grown.
• The research aims to establish the specific sectors of the production services industry that directly have an impact on the country's regional economic growth.
• The research aims to justify the relationship between the advanced production services industry and the position of the country’s regional economic growth.
• The research aims to point at the case studies available for future reference to the research.

Literature Review

Various studies have been done to substantiate the above topic on the spatial econometric analysis of the relationship between the above-mentioned research proposal (Wang et al., 2019). The economy of China has been in a dilemma in the past years, an event which has had effects not only on the international trading environment having in mind that China is an extensively exporting country but also the development of industries in the country which is integral in the development and elevation of the economic status of the country (Li, 2017). There should, therefore, be a way to cluster the development of industries, which will help boost the economy of the country without having negative effects on the general wellbeing of the country economically.

Li et al., (2014) wrote about the economic growth and pollutant emissions in China and did a spatial econometric analysis. Their study is vital to this research proposal and, by extension, the research as it explains the relationship between the increase in emissions and how it signifies the increase in industrial developments. They have enumerated the processes used in the study to achieve their results and recommended the possible policies that should be implemented. They have reflected on the level of economic development and variables such as industrial structure and population density to achieve their results. The spatial econometric analysis methods have well been explained by (Hao & Liu, 2016).

Zhou et al., (2017) did a comparative study on the relationship and factors between regional economic development, and industrial energy-related carbon emissions revealed the results on the relationship. They even proved the findings (Hao et al., 2016). There is thus a relationship that exists between the two, as established by Long et al., (2016). Bai et al., (2012) talks about the regional economic growth in China and the factors that led to the growth mentioning the increase in the production services industry. There is, however, a need for more research to be done to clearly distinguish the relationship and the impact on the regional economic growth of China. The spatial econometric analysis is the best method to achieve that (Ke et al., 2014).

Significance of the Study

China is on the rise with its producer services industry sector. The advancement has enabled it to provide more employment to its citizens and even foreigners in the job market. The advancement has also made the country one of the leading exporters globally, and that has seen it develop permanent beneficial ties with different countries (Yu et al., 2012). It is, therefore, of essence that a study of this nature is done to evaluate the effects of the advanced producer services industry in the country and how it helped in the regional economic development of the country (Zeng et al., 2019). The study will research the various methods the relationship has been beneficial to China in terms of its regional economic position and what the forecast for such operations has in store for the country.

Research Methodology

The more extensive research will involve a survey into the producer service industries in China, where mixed methods will be used to gather data on them. The data will be collected through qualitative research. They will constitute the year of establishment, the main product or service being offered, and how the industry is helping the country in its quest for economic elevation and development (Denzin & Lincoln, 2005). There will be a study on the spatial distribution of producer service industries, among others, to resource the study (Liang et al., 2007). The study will compose and analyze the evidence on the sectors identified and get to know how they participate in the economy. Surveys will be done, informal conversations held, interviews, observations, and even taking of field summaries (Flyvbjerg, 2011). The research that will be written in this paper will be scrutiny on the spatial econometric methods through quality analysis selected to embody a variety of vast heights the relationship between producer service industries in China and the regional economic growth in the country.

The data collection methods that will be used include interviews, library research, and finally, evaluation and analyses of samples done. Peer-reviewed studies on the topic will be used too to exhaust the topic of discussion.

References

Bai, C. E., Ma, H., & Pan, W. (2012). Spatial spillover and regional economic growth in China. China Economic Review, 23(4), 982-990.

Denzin, N.K., & Lincoln, Y.S. ( 2005). Introduction: The discipline and practice of qualitative research. In N. K. Denzin & Y. S. Lincoln (Eds.), The handbook of qualitative research (3rd ed., pp. 1-32). Thousand Oaks, CA: Sage.

Fan, C. C., & Scott, A. J. (2003). Industrial agglomeration and development: a survey of spatial economic issues in East Asia and a statistical analysis of Chinese regions. Economic geography, 79(3), 295-319.

Flyvbjerg, B. (2011) "Case Study", in N.K. Denzin & Y.S. Lincoln (Eds.), The Sage Handbook of Qualitative Research, 4th Edition. Thousand Oaks, CA: Sage, pp. 301–316.

Hao, Y., Liu, Y., Weng, J. H., & Gao, Y. (2016). Does the Environmental Kuznets Curve for coal consumption in China exist? New evidence from spatial econometric analysis. Energy, 114, 1214-1223.

Hao, Y., & Liu, Y. M. (2016). The influential factors of urban PM2. 5 concentrations in China: a spatial econometric analysis. Journal of Cleaner Production, 112, 1443-1453.

Ke, S., He, M., & Yuan, C. (2014). Synergy and co-agglomeration of producer services and manufacturing: A panel data analysis of Chinese cities. Regional Studies, 48(11), 1829-1841.

Liang, X. Y., Li, Z. G., Tang, S. K., & Zhao, l. J. (2007). A study on the spatial distribution of Chinese hi-tech industries——spatial econometrics analysis based on province-level industrial output value [J]. Studies in Science of Science, 3.

Li, B. (2017). The interaction of clusters between manufacturing and producer services in China. Economic research-Ekonomska istrazivanja, 30(1), 1427-1442.

Li, Q., Song, J., Wang, E., Hu, H., Zhang, J., & Wang, Y. (2014). Economic growth and pollutant emissions in China: a spatial econometric analysis. Stochastic environmental research and risk assessment, 28(2), 429-442.

Long, R., Shao, T., & Chen, H. (2016). Spatial econometric analysis of China’s province-level industrial carbon productivity and its influencing factors. Applied Energy, 166, 210-219.

Wang, C., Zhang, X., Vilela, A. L., Liu, C., & Stanley, H. E. (2019). Industrial structure upgrading and the impact of the capital market from 1998 to 2015: A spatial econometric analysis in Chinese regions. Physica A: Statistical Mechanics and its Applications, 513, 189-201.

Yu, N., De Jong, M., Storm, S., & Mi, J. (2012). Transport infrastructure, spatial clusters and regional economic growth in China. Transport Reviews, 32(1), 3-28.

Zeng, J., Liu, T., Feiock, R., & Li, F. (2019). The impacts of China's provincial energy policies on major air pollutants: A spatial econometric analysis. Energy Policy, 132, 392-403.

Zhou, X., Zhang, M., Zhou, M., & Zhou, M. (2017). A comparative study on decoupling relationship and influence factors between China's regional economic development and industrial energy–related carbon emissions. Journal of cleaner production, 142, 783-800.