The mechanisms and effects of synergistic industrial clustering for empowering high-quality economic development

This study investigates the role of industrial coagglomeration in promoting high-quality economic development using panel data from 30 Chinese provinces between 2012 and 2021. Employing a two-way fixed effects model, we find that coagglomeration significantly enhances development quality, a result that remains robust to alternative model specifications and instrumental variable estimation. Mechanism analysis demonstrates that coagglomeration facilitates high-quality development through two critical pathways: greater openness to foreign trade and enhanced network infrastructure. Heterogeneity analysis further reveals that these positive effects are more pronounced in regions with stronger technological innovation capacity richer human capital, and a more developed service sector. In contrast, the effects are statistically insignificant in regions constrained by weaker technological foundations, lower labour quality and less developed service systems, suggesting that structural bottlenecks may inhibit the realization of coagglomeration externalities. By identifying multidimensional transmission mechanisms and regional heterogeneity, this study deepens the theoretical understanding of how industrial spatial organization shapes development quality and provides empirical foundations for designing regionally differentiated development strategies.