Agglomeration Externalities, Network Externalities and Urban High-Quality Development: A Case Study of Urban Agglomeration in the Middle Reaches of the Yangtze River

Abstract

The rapid development of the urban network has led to the fact that cities are no longer single individuals, and the network has changed the urban development environment. The interaction between cities has gradually become an important factor for the high-quality development (HQD) of cities. From the perspective of externalities, it is of great significance to explore the impact of agglomeration externalities and network externalities on the HQD of cities to promote the high-quality and sustainable development of the region. Taking the urban agglomeration in the middle reaches of the Yangtze River as an example, this study constructs a theoretical framework to empirically study the influence of agglomeration externalities and network externalities on the HQD of the city. The results show that the integrated network of the urban agglomeration from 2011 to 2020 had a high clustering coefficient and a small average path length with the characteristics of a “small world”. The centrality of urban nodes was hierarchical and had a “pyramid” structure. From 2011 to 2020, the high-quality development level (HQDL) of the urban agglomeration steadily improved and the regional “development gap” gradually narrowed. Wuhan, Changsha, and Nanchang were in a relatively advantageous position in the urban agglomeration. Furthermore, there was a spatial agglomeration effect and a spatial spillover effect in the HQD of urban agglomeration. Network externalities presented difference in different cities, and the influence of agglomeration externalities on HQD presented a u-shaped nonlinear relationship. Network externalities could significantly promote HQD, and the indirect effect of HQD was greater than its direct effect. In addition, factors such as government capacity and level of opening to the outside world also had a significant impact on the HQD of the region.