Did city cluster development help improve labor productivity in China?

In 2015, there were more than 20 city clusters in China, designated by the central government. Based on panel data from 283 Chinese cities over the period of 2003–2013, this paper evaluates whether cities within city clusters have higher productivity than those outside the clusters. The empirical results reveal that the city cluster strategy initiated in China's 11th Five-Year Plan has not produced any significant impact on labor productivity, possibly due to market segmentation. However, an exception is the Yangtze River Delta Urban Economic Coordination Committee – the most developed city cluster in China, which has experienced growing productivity improvement.