Open Access Journal Article

Sustainable development with city, industry, economic and environment: The role of city-industry integration on green economic growth

by Xiaoli Hao a,* Yuhong Li b  and  Ume Lail c
Center for Innovation Management Research, Xinjiang University, Urumqi, China
School of Economics and Finance, Xi’an Jiaotong University, Xi'an, China
School of Social Sciences & Humanities, National University of Science & Technology, Islamabad, Pakistan
Author to whom correspondence should be addressed.
JRE  2022, 1; 1(1), 1;
Received: 12 November 2022 / Accepted: 25 December 2022 / Published Online: 29 December 2022


In order to avoid the real economy development lags behind and the deterioration of ecological problems in the process of traditional urbanization, China has been promoting city-industry deep integration, but the connection between city-industry integration and green economic growth, especially the spatial effect, has not been systematically explained. Based on the panel data from 2007 to 2018, this paper constructs an evaluation index system and uses the SEEA method to measure city-industry integration (CII) level and green economy growth (GEG) level. Then, by employing spatial Durbin model and intermediary effect model, it further systematically investigates the spatial impact of CII on GEG and the potential mechanism. The study found that: (1) On the whole, CII shows “slow-steady integration” trend, but regional heterogeneity was obvious and accompanied by “slow gap expansion”. GEG experienced “sharp increase” with “polarization” characteristic. (2) CII can directly promote regional GEG (with a marginal effect of 0.689), more effectively than traditional urbanization, and CII has obvious spatial spillover effects on GEG in both “local effect” and “neighboring effect”. (3) Interestingly, technological innovation and consumption structure upgrading are significant mediating mechanisms. (4) The direct positive effect of CII shows the regional imbalance characteristic. Finally, the corresponding policy implications are put forward.

Copyright: © 2022 by Hao, Li and Lail. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Show Figures

Share and Cite

ACS Style
Hao, X.; Li, Y.; Lail, U. Sustainable development with city, industry, economic and environment: The role of city-industry integration on green economic growth. Journal of Regional Economics, 2022, 1, 1.
AMA Style
Hao X, Li Y, Lail U. Sustainable development with city, industry, economic and environment: The role of city-industry integration on green economic growth. Journal of Regional Economics; 2022, 1(1):1.
Chicago/Turabian Style
Hao, Xiaoli; Li, Yuhong; Lail, Ume 2022. "Sustainable development with city, industry, economic and environment: The role of city-industry integration on green economic growth" Journal of Regional Economics 1, no.1:1.
APA style
Hao, X., Li, Y., & Lail, U. (2022). Sustainable development with city, industry, economic and environment: The role of city-industry integration on green economic growth. Journal of Regional Economics, 1(1), 1.

Article Metrics

Article Access Statistics


  1. Anselin, L. (1988). Spatial Econometrics: Methods and Models. Springer Netherlands.
  2. Baden-Fuller, C., & Haefliger, S. (2013). Business models and technological innovation. Long range planning, 46(6), 419-426.
  3. Baron, R.M. and Kenny, D. (1986) The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51, 1173-1182.
  4. Bian,Y.L., Dong,L., Liu, Z.W., Zhang,L.Z. (2020). A Sectoral Eco-Efficiency Analysis on Urban-Industrial Symbiosis. Sustainability, 12(9), 3650-3699.
  5. Bloom DE., Canning D., Fink G .(2008). Urbanization and the wealth of nations. Science 319: 772–775.
  6. Boudeville, J. R. (1967).Problems of Regional Economic Planning, The Economic Journal,77(307), 629-630.
  7. Chai, J., Hao, Y., Wu, H., & Yang, Y. (2021). Do constraints created by economic growth targets benefit sustainable development? Evidence from China. Business Strategy and the Environment, 30(8), 4188-4205.
  8. Chikaraishi,M., Fujiwara,A., Kaneko,S., Poumanyvong,P., Komatsu,S., Kalugin,A. (2015).The moderating effects of urbanization on carbon dioxide emissions: A latent class modeling approach. Technological Forecasting and Social Change .90,302-317. 2013.12.025.
  9. Cong,H.B., Zou,D.L., Liu,C.J. (2017). Analysis of Spatial-Temporal Pattern of City-Industry Integration against the Perspective of a New Kind of Urbanization. Economic Geography (07), 46-55. 2017.07.007.
  10. Duesenberry, J. S. (1949). Income, saving, and the theory of consumer behavior.
  11. Duranton,G.,Puga, D. (2001). Nursery Cities: Urban Diversity,Process Innovation,and the Life Cycle of Products. American Economic Review. 91(5), 1454- 1477.
  12. Ebenezer Howard. (1898). To- morrow: A peaceful Path to Real Reform, Swan Sonnenschein
  13. Engel,J.S.,Del- Palacio,I. (2011). Global Clusters of Innovation: The Case of Israel and Silicon Valley. California Management Review. 53 (2),27- 49.
  14. Fan,Z.Y.,Zhou,S.F. (2018). The Effect of New Urbanization on Economic Growth-Research Based on the Dynamic Panel Data Models with Spatial Errors. Journal of Applied Statistics and Management (01),146-154. 20170718-003.
  15. Feldman, M. P. (1999). The New Economics Of Innovation, Spillovers And Agglomeration: Areview Of Empirical Studies. Economics of Innovation and New Technology, 8(1-2), 5–25.
  16. Feldstein, M. (1974). Social Security, Induced Retirement, and Aggregate Capital Accumulation. Journal of Political Economy, 82(5), 905–926.
  17. Filip,D.B.,Beveren,I.V. (2012).Does Firm Agglomeration Drive Product Innovation and Renewal? An Application for Belgium. Tijdschrift Voor Economische En Sociale Geografie. 103(4), 457- 472.
  18. Gan,L., Shi,H., Hu,Y., Lev,B.,Lan,H.X. (2020).Coupling coordination degree for urbanization city-industry integration level: Sichuan case. Sustainable Cities and Society. 58,1-14.
  19. Glaeser, E.L., Rosenthal, S.S. and Strange, W.C. (2010). “Urban economics and entrepreneurship ”, Journal of Urban Economics, Vol. 67 No. 1, pp. 1-14. 2009.10.005.
  20. Gu, C., Hu, L., & Cook, I. G. (2017). China’s urbanization in 1949–2015: Processes and driving forces. Chinese Geographical Science, 27(6), 847–859.
  21. Hao, Y., Guo, Y., & Wu, H. (2022). The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?. Business Strategy and the Environment, 31(1), 403-424.
  22. He,X.B. (2019). The Impact of Urbanization on the Quality of China's Economic Growth: Based on Provincial Panel Data. Urban Problems (01),4-13.
  23. Henderson, J. V., J. Quigley, and E. Lim. (2009). Urbanization in China: Policy Issues and Options [J]. Brown University Unpublished Manuscript (20): 1-39.
  24. Holden,M. (2006).Urban indicators and the integrative ideals of cities. Cities.23(3), 170-183. 2006.03.001.
  25. Jacobs J. (1969).The Economy of Cities. New York: Random House.
  26. Krugman, P. (1991). “Increasing returns and economic geography ”, Journal of Political Economy,Vol. 99 No. 3, pp. 483-99.
  27. Kumar, A. and Kober, B. (2012). “Urbanization, productivity human capital, and cross-country differences ”, Economics Letters, Vol. 117 No. 1, pp. 14-17. 2012.04.072.
  28. Lan, F., Sun, L., & Pu, W. (2021). Research on the influence of manufacturing agglomeration modes on regional carbon emission and spatial effect in China. Economic Modelling, 96, 346-352.
  29. Lee LF, Yu J. (2010) Some recent developments in spatial panel data models. Reg Sci Urban Econ;40(5):255e71.
  30. Lesage, J.P. and Pace, R.K. (2009). Introduction to Spatial Econometrics. CRC Press, Boca Raton, 513-514
  31. Li J, Li S. (2020). Energy investment, economic growth and carbon emissions in China-empirical analysis based on spatial Durbin model[J]. Energy Policy; 140:111425.
  32. Li,F.,Liu,X.S., Hu,D.,Wang,R.S.,Yang,W.R., Li,D.,Zhao,D. (2009). Measurement indicators and an evaluation approach for assessing urban sustainable development: a case study for China's Jining City. Landscape and Urban Planning.90(3),134-142.
  33. Li,J.Y. ,Li,H. (2016).Urban-rural Income Gap and Consumption Structure: A Study Based on Relative Income Hypothesis. The Journal of Quantative and Technical Economics (08), 97-112. 2016.08.007.
  34. Li,W.B., Chen,H. (2012). Analysis of City-Industry Integration and Planning Strategies. Urban Planning Forum (S1),99-103.
  35. Li,Y.X.,Zhang,Z.Y. (2021). Evaluation and Threshold Effect of the integration of industry and city in western China. Statistics & Decision (05),86-90.
  36. Lin,S., Jing, J.J. (2017). Empirical research about the degree of city-industry integration: A contrast of the typical cities in China, Journal of Interdisciplinary Mathematics. 20(1), 87-100. 2016.1259764.
  37. Liu,R.Z.,Wang,S.H. (2013). The integration of industry and city in new urban areas. Urban Problems(06),1822.
  38. Liu,X.P. (2020). Build A Complete Domestic Demand System With New-type Urbanization as A n Important Carrier. Macroeconomic Management(11),20-24.
  39. Lu,S.,Minoru,F.,Li,Z.L., Dong, H.J., Geng,Y.,Liu,Z.,Tsuyoshi,F.,Yu,X.M.,Zhang,Y.P. (2020). Energy-saving and carbon emission reduction effect of urban-industrial symbiosis implementation with feasibility analysis in the city. Technological Forecasting and Social Change, 151, 119853.
  40. Maddison, A. (1987). Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment. Journal of Economic Literature, 25(2), 649–698.
  41. Martínez-Zarzoso. (2011). The impact of urbanization on co2 emissions: evidence from developing countries. Ecological Economics, 70(7), 1344-1353.
  42. Miren Lafourcade, Giordano Mion. (2007).Concentration, agglomeration and the size of plants,Regional Science and Urban Economics,Volume 37, Issue 1,46-68.
  43. Mohanty,S.,Sethi,N. (2019). Outward FDI, human capital and economic growth in BRICS countries: an empirical insight. Translational Corporations Review.11(3),235-249.
  44. Muellbauer. (1988). Habits, Rationality and Myopia in the Life Cycle Consumption Function. Annales d’Économie et de Statistique, (9), 47.
  45. Nguyen, H.M.and Nguyen, L.D. (2018).The relationship between urbanization and economic growth An empirical study on ASEAN coutries, International Journal of Social Economics, Vol.45 No.2, pp316-339.
  46. Ning,L.,Wang,F.,Li,J. (2016).Urban Innovation,Regional Externalities of Foreign Direct Investmentand Industrial Agglomeratio: Evidence from Chinese Cities. Research Policy. 40,368-379.
  47. Palme,U.,Tillman,Anne-Marie. (2008). Sustainable development indicators: how are they used in Swedish water utilities?. Journal of Cleaner Production.16(13),1346-1357.
  48. Panne,G.V.D. (2004). Agglomeration Externalitie: Marshall Versus Jacobs. Journal of Evolutionary Economics.14(5), 593- 604.
  49. Perroux, F. (1955). A note on the notion of growth pole[J]. Applied Economy, 1(2): 307 - 320.
  50. Qiao,Y.B. (2020).Evolution, Characteristic, and Direction of China’s Urbanization Since the Reform and Opening Up: From the Perspectives of Population, Economy, and Institution. City Planning Review (01), 44-51. SUN: CSGH. 0.2020-01-009.
  51. Qiu,Y. (2013). Technological innovation effect of Urbanization: An empirical study based on Panel data of China from 1990 to 2010.Chinese Journal of Population Science(01), 26-35+126. SUN: ZKRK. 0.2013-01-004.
  52. Ren, S., Li, L., Han, Y., Hao, Y., & Wu, H. (2022). The emerging driving force of inclusive green growth: Does digital economy agglomeration work?. Business Strategy and the Environment, 31(4), 1656-1678.
  53. Salesses, P., Schechtner, K., Hidalgo, C. A. (2013). The Collaborative Image of The City: Mapping the Inequality of Urban Perception. PLoS ONE, 8(7), e68400.
  54. Su, L., & Jia, J. J. (2017). Empirical research about the degree of city-industry integration: A contrast of the typical cities in China. Journal of Interdisciplinary Mathematics, 20(1), 87-100.
  55. Su,L.,Guo,B.,Li,X. (2013). Fuzzy AHP Evaluation on Production-city Integration of Shanghai Zhangjiang High-tech Zone. Journal of Industrial Technological Economic(07),12-16. SUN: GHZJ.0.2013-07-003.
  56. Sun, Y.F.Xia, Q.and Zhou, M. (2016). Economic growth effect of new urbanization development and industrial structure change, Journal of Quantitative and Technical Economics, Vol.33 No.11.pp. 23-40.
  57. Swanson, J. A., Pred, A. R. (1969). The Spatial Dynamics of U.S. Urban-Industrial Growth. The Economic History Review, 22(1), 171.
  58. Tang,X.J.,Ma,G.H. (2016).Urbanizatio,Development of Service Industry and Residents' Consumption:International Experiences. Finance and Economics(07), 90-98. SUN: CJKX.0.2016-07-011.
  59. Tobler, W. R. (1970). A Computer Movie Simulating Urban Growth in the Detroit Region. Economic Geography, 46, 234.
  60. Usman, A., Ozturk, I., Ullah, S., & Hassan, A. (2021). Does ICT have symmetric or asymmetric effects on CO2 emissions? Evidence from selected Asian economies. Technology in Society, 67, 101692.
  61. Vernon Henderson. (2003).The Urbanization Process and Economic Growth: The So-What Question. Journal of Economic Growth, 8(1), 47–71.
  62. Wang, G.G. (2010).Urbanization: Core of China Economic Development Mode Transition. Economic Research Journal(12), 70-81+148. JJYJ.0.2010-12-007.
  63. Xu,Q.Y., Fang,S.F., Ma.L.L. (2019). New Urbanization, upgrading of industrial structure and China’s economic growth: Empirical research based on spatial spillover and threshold effect. System Engineering-Theory & Practice.(06),1407-1418. SUN: XTLL.0.2019-06-005.
  64. Yigitcanlar, T., Dur, F. (2010).Developing a sustainability assessment model: the sustainable infrastructure, land-use,environment,and transport mode.Sustainbility.2(1), 321-340.
  65. You W, Lv Z. (2018) Spillover effects of economic globalization on CO2 emissions: aspatial panel approach. Energy Economics; 73:248e57.
  66. Yu, J., Shi, X., & Cheong, T. S. (2021). Distribution dynamics of China's household consumption upgrading. Structural Change and Economic Dynamics, 58, 193-203.
  67. Yu,K.Z.,Huang,C.H.,Yu,J.Y. (2014). The Analysis of the Effect of Urbanization on China's Economic Growth. Finance & Economics(07), 52-60. SUN: CJKX.0.2014-07-007.
  68. Zang, L., Su, Y. (2019). Internal Coordinated Development of China’s Urbanization and its Spatiotemporal Evolution. Sustainability, 11(3), 626.
  69. Zha Donglan; Zhou Dequn; Zhou Peng. (2010). Driving forces of residential CO2 emissions in urban and rural China: An index decomposition analysis. 38(7), 3377–3383.
  70. Zhang, D.G. (2011). The new concept of “integration of industry and city” Dicision-Making. (01),1. JCZX. 0.2011-01-001.
  71. Zhao, Z. , Bai, Y. , Wang, G. , Chen, J. , Yu, J. , & Liu, W. (2018). Land eco-efficiency for new-type urbanization in the beijing-tianjin-hebei region. Technological Forecasting and Social Change, 137(DEC.), 19-26. 2018.09.031
  72. Zhou,J.L.,Zhou,H.,Zhou,Z.L. (2019). New China's 70 - Year Urbanization Development: Review, Reflection, and Outlook. Finance and Trade Research(12), 1-13.
  73. Zhu,K.L.,Li,J.J.,Le,F.F. (2011). Empirical Analysis on the Relationship between China Urbanization and Economic Growth. Statistical Research(09), 80-87.
  74. Zou,D.L., Cong, H.B. (2019). Spatio-Temporal Diversity Pattern of City-Industry Integration and Its Influencing Factors in China. Economic Geography(06),66-74. 2019.06.008.