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March 19, 2026Urban Science1 citationsOpen Access

How Do Urban Network Externalities Affect Regional Economic Growth? Evidence and Heterogeneity Analysis from China’s Yangtze River Economic Belt

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SYShuhan YangWSWei SongYLYang Li

Key Points

  • The main aim is to assess how urban network externalities influence regional economic growth and their spatiotemporal variations.
  • Constructed a multi-dimensional urban network framework focusing on enterprise linkages, infrastructure connectivity, and innovation collaborations.
  • Employed the Cobb–Douglas production function and spatial Durbin model for quantitative assessments.
  • Analyzed regional differences and city-size heterogeneity in growth effects.
  • Urban network externalities positively impact regional economic growth.
  • Effects vary regionally and by city size, with larger cities benefiting more.
  • About 70% of growth contributions are direct effects within regions, while 30% are spillover effects from neighboring regions.
  • Significant spillovers occur within 380 km, peaking at distances of 180 km and 340 km.

Abstract

Urban network externalities have emerged as a novel impetus for regional economic growth. However, the extent to which inter-urban network connections promote regional economic growth and the associated spatiotemporal heterogeneity remain underexplored. This study constructs a multi-dimensional urban network framework from the perspectives of enterprise linkages, infrastructure connectivity, and innovation collaborations, capturing the multifaceted nature of intercity relationships and their critical role in shaping regional development. Utilizing the Cobb–Douglas production function and the spatial Durbin model, the study quantitatively assesses the impact of urban network externalities on economic growth and examines the spatiotemporal heterogeneity of these impacts. The main findings are as follows: Urban network externalities generally exert a positive influence on regional economic growth, yet this effect exhibits significant regional and city-size heterogeneity. Regions with more developed networks experience stronger growth effects from these externalities. Moreover, large cities benefit more substantially from network integration compared to small and medium-sized cities. Spatial decomposition of effects further reveals that urban network externalities promote economic growth through both local direct effects and spillover effects to neighboring areas. Approximately 70% of the economic growth contribution originates from direct effects within the region, while nearly 30% stems from spillover effects from adjacent regions. Additionally, the spatial spillover effects display clear distance decay, following an inverted U-shaped pattern with a bimodal distribution. Significant spillover effects are observed within 380 km, peaking at 180 km and 340 km.

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Cite This Study

Yang et al. (2026) studied this question.

synapsesocial.com/papers/69bb92df496e729e629808e0https://doi.org/10.3390/urbansci10030163
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