Knowledge Spillovers and Regional Economic Growth in China: An Empirical Study Based on Four Regional Divisions

Gu Luoluo

Authors

Gu Luoluo Faculty of Economics, Thammasat University, Bangkok 10200, Thailand

Keywords:

Knowledge spillovers, Regional growth, New Economic Geography, Technology diffusion

Abstract

This study investigates the impact of knowledge spillovers on regional economic growth in China, focusing on technology flow and R&D personnel investment as key drivers of industrial GDP. The research aims to evaluate the influence of these factors on industrial GDP, analyze regional disparities in industrial development and knowledge spillovers, and propose policy recommendations to promote balanced growth. Drawing on secondary data from 31 provinces spanning 2000 to 2021, the analysis employs a fixed-effects regression model, which demonstrates strong explanatory power, with adjusted R² values ranging from 0.938 to 0.964 across regions. The results show that R&D investment contributes significantly to industrial GDP in all regions, increasing output by approximately 4% to 7%, depending on the level of regional development. Technology flow, however, exhibits greater regional variation: it accounts for up to 25% of industrial growth in the Northeast region, around 15% in the Western region, shows minimal effect in the Central region, and has a slightly negative impact in the Eastern region. These results underscore how regional conditions mediate the effectiveness of knowledge spillovers and innovation strategies, highlighting the need for tailored policies to strengthen R&D ecosystems and technology transfer mechanisms. The insights contribute to the broader literature on regional economic growth and provide practical guidance for policymakers seeking to address disparities and foster sustainable growth.

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