Industrial Structure Optimization of Wuhan Urban Agglomeration Based on TFP and Industrial Spatial Linkages

Abstract

As a complex symbiosis, a reasonable industrial structure of each symbiotic unit within an urban agglomeration (UA) is crucial to the sustainable development of the regional economy. In an urban agglomeration (UA), a reasonable industrial structure is crucial to the sustainable development of the regional economy. This paper comprehensively considers the industrial total factor productivity (TFP) and the industrial spatial linkages between cities to adjust the industrial structure. Malmquist index (MI) is introduced to assess the industry performance in this paper to judge the development status of the industry. The calculation method for identifying industrial structure similarity is improved by combining it with industrial spatial linkages, to accurately reflect the degree of industrial structure convergence in the UA and to recognize which cities need industrial adjustment. The results from a case study on Wuhan UA showed that the method proposed in this paper can provide objective and specific suggestions for every industrial sector in each member city of the UA on a regional scale, so that the city can give priority to the developing industry with a certain foundation on the premise of avoiding the low resource allocation efficiency.