Understanding Virtual Agglomeration Dynamics in the Digital Age: Empirical Evidence from China’s Provinces
Keywords:
virtual agglomeration, human capital, new quality productivity, high-quality development of China's economy, innovationAbstract
This study examines the spatial distribution of virtual agglomeration across Chinese provinces from 2012 to 2021, using regional grouping, the ratio to the national average, and the quartile method to analyze the overall trend of virtual agglomeration in China and the changes across 31 provinces (including municipalities). The study explores the persistence and volatility of virtual agglomeration, as well as the temporal trajectories of nine closely related factors. Our findings reveal a pronounced disparity in virtual agglomeration across provinces, although this gap appears to be narrowing. Human capital emerges as a significant factor influencing variations in virtual agglomeration. Furthermore, virtual agglomeration exhibits substantial temporal shifts and regional heterogeneity, with the eastern regions leading and the western regions trailing, reflecting an imbalanced development trajectory. Compared to the Northeast, the East shows declining human capital, increased innovation, stronger geographical agglomeration, weaker digital economy, higher green economic efficiency, higher domestic value-added in exports, lower high-quality economic development, and stronger new quality productivity. The Central region shows declining human capital, significantly increased innovation, very strong geographical agglomeration, a stronger digital economy, higher green economic efficiency, higher domestic value-added in exports, lower high-quality economic development, and weaker new quality productivity. The West shows increasing human capital, higher innovation, weaker geographical agglomeration, a weaker digital economy, higher green economic efficiency, higher domestic value-added in exports, lower high-quality economic development, and stronger new quality productivity. These factors influence virtual agglomeration, ultimately leading to the highest levels in the East, followed by the Central and Western regions, while the Northeast exhibits fluctuations. The latter three regions have consistently been below the national average. Therefore, the virtual agglomeration levels in areas outside the East, particularly in the Western and Northeastern regions, should be further enhanced.
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