Network capital and economic growth of major urban agglomeration regions in China

This study investigates the effect of regional urban networks on regional economic growth. This study first develops a theoretical framework by combining the concept of network capital with the theory of urban network externality, arguing that regional network capital has two dimensions: the flow volume and the clustering structure. Furthermore, this study empirically examines the role of network capital on the economic growth of major urban agglomeration regions in Chinaand employs historical instruments to address endogeneity issues. The results show that network capital has a significant impact on promoting regional economic growth. These findings imply that the flow volume and the clustering structure in regional urban networks are indispensable factors that enhance regional economic performance.