New Infrastructure Construction and Coordinated Development of the Regional Economy: The Empirical Evidence from the Yangtze River Delta Region in China

Abstract

This study explores the “gap reduction effect” of new infrastructure on regional economic disparities, investigating both its impact and underlying mechanisms in narrowing these gaps. Focusing on 41 prefecture-level cities within the Yangtze River Delta, this paper constructs an evaluation index system for new infrastructure and quantitatively measures its development. The results reveal that while the overall level of new infrastructure in the region is relatively advanced, there are notable disparities between cities. The benchmark analysis demonstrates a significant positive relationship between the development of new infrastructure and the promotion of coordinated regional economic growth. New infrastructure fosters industrial and spatial integration through three primary pathways: enhancing the efficiency of the resource allocation within regions, driving industrial upgrades, and facilitating the diffusion of technological innovations. These factors collectively contribute to the balanced and coordinated development of regional economies. Further investigation uncovers a threshold effect, suggesting that the level of digitalization plays a crucial role in facilitating the regional economic integration catalyzed by new infrastructure.