Spatial structure and labour productivity: Evidence from prefectures in China

This paper examines the effect of spatial structure, as measured on the monocentricity-polycentricity dimension, on labour productivity at the prefectural level in China. Using pooled cross-sectional and instrumental variable techniques, we find that, all else being equal, prefectures with a more monocentric spatial structure have a higher labour productivity, robust to different specifications. Furthermore, large agglomeration economies may fuel the beneficial effects of monocentricity. We conclude that, in terms of economic performance, monocentric-oriented spatial strategy could be a better choice for Chinese prefecture-scale regions.