Does manufacturing agglomeration promote or hinder green development efficiency? Evidence from Yangtze River Economic Belt, China

Sustainable development can be mainly achieved by promoting the green transformation and development of the world economy and by improving the efficiency of regional green development, which often receive extensive attention from the academia. This paper uses a spatial econometric model to estimate the impact of manufacturing agglomeration on green development efficiency based on the panel data of China’s Yangtze River Economic Belt (YREB). The results show an overall large gap of green development efficiency between regions in the Yangtze River Economic Zone, mostly due to the extremely uneven development of green development efficiency in the upper reaches. Opposite to the middle and lower reaches, manufacturing agglomeration in the upper reaches of the YREB improves green development efficiency. Manufacturing agglomeration is conducive to the improvement of green development efficiency in adjacent areas. Nonetheless, it may hinder green development efficiency by inhibiting green technological innovation. This paper provides empirical evidence and policy implications for applying manufacturing agglomeration to promote green development efficiency in accordance with local conditions.