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How does China's Western Development Strategy affect regional green economic efficiency?

Chengfeng Zhuo¹, Feng Deng¹

¹School of Economics and Management, Xinjiang University, Urumchi 830000, China; Center of Innovation Management in Xinjiang, Xinjiang University, Urumchi 830000, China.

The Science of the Total Environment

|December 22, 2019

Summary

China's Western Development Strategy (WDS) boosts green economic efficiency (GEE) by facilitating innovation factor flow. Optimal GEE improvement occurs when innovation inflows range from 0.347 to 0.618.

Keywords:

Green economic efficiency Panel smoothing transformation regression Synthetic control method Transmission mechanisms Western Development Strategy

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Area of Science:

Environmental Economics
Regional Development Studies
Innovation Policy

Background:

China aims to reduce regional economic disparities and foster environmental sustainability.
Green development in resource-rich areas is a critical global challenge.
The Western Development Strategy (WDS) is a key policy initiative in China.

Purpose of the Study:

To assess the impact of the WDS on provincial Green Economic Efficiency (GEE) in China.
To investigate the mechanisms through which WDS influences GEE, focusing on innovation factor flows.
To determine the optimal scale of innovation factor inflow for enhancing GEE in western regions.

Main Methods:

Calculation of provincial Green Economic Efficiency (GEE).
Application of the synthetic control method to evaluate the WDS's net effect on GEE.
Analysis of interregional innovation factor flows as transmission mechanisms.

Main Results:

Coastal regions exhibit higher GEE than western regions.
WDS generally enhances GEE, though effects diminish over time and vary regionally.
WDS improves GEE via innovation, industrial upgrading, urbanization, and labor quality enhancement.
An optimal inflow range (0.347-0.618) for innovation factors is identified for positive GEE impact.

Conclusions:

The WDS positively influences regional GEE, particularly through innovation factor mobility.
Targeted policies are needed to optimize innovation factor inflow for sustainable green development in western China.
Addressing regional disparities requires strategic integration of economic development and environmental protection.