Innovation-Driven Industrial Agglomeration Impact on Green Economic Growth in the Yellow River Basin: An Empirical Analysis

Abstract

Harnessing empirical analysis, this paper investigates the relationship between innovation-driven industrial agglomeration (IDIA) and economic growth (GEG) in the context of the Yellow River Basin in China. The study employs a non-radial and non-angular SBM ML model to comprehensively evaluate GEG levels. Leveraging panel data spanning from 2008 to 2020 across 30 provinces and cities, the analysis systematically explores the influence of IDIA on GEG. The research uncovers a significant positive connection between IDIA and GEG, with a noteworthy impact observed particularly in underdeveloped regions, areas in intermediate stages of industrialization, and industries characterized by heightened pollution levels. Importantly, the study reveals that green technology adoption (GTA) acts as a critical mediator between IDIA and GEG, particularly within the context of dirty manufacturing firms that are transitioning from mid-level industrialization. These findings provide valuable insights for policymakers and industry stakeholders, enabling them to devise targeted strategies for driving green technology adoption and fostering sustainable economic growth. While this study contributes significantly to our understanding, it is important to acknowledge its limitations, including the specific geographical focus on the Yellow River Basin and the potential complexities inherent in assessing the intricate relationship between industrial agglomeration and economic growth. Future research avenues could extend to broader geographical contexts and delve into more nuanced mechanisms underlying the observed connections.