scholarly journals The Drag Effect of Water Resources on China’s Regional Economic Growth: Analysis Based on the Temporal and Spatial Dimensions

Water ◽  
2020 ◽  
Vol 12 (1) ◽  
pp. 266 ◽  
Author(s):  
Yao Zhang ◽  
Wenxin Liu ◽  
Minjuan Zhao
Keyword(s):  
Economic Growth ◽  
Water Resources ◽  
Water Resource ◽  
Resource Constraints ◽  
Strong Dependence ◽  
Sustainable Use ◽  
Regional Economic Growth ◽  
Drag Effect ◽  
Regional Economic ◽  
Effect Of Water

Studying the influencing factors of the drag effect of water resources and its temporal–spatial variation can help governments to solve the problem of water resource constraints on the economic growth of different regions. Based on Romer’s hypothesis, this paper uses panel data to empirically analyze the drag effect of water resources in China’s 31 provinces from 1987 to 2017. The research shows that: (1) Water resources have certain constraints on the economic growth of each region. Regional economic growth has declined by 0.23% (eastern), 0.07% (western), 0.43% (central) and 0.09% (northeastern) annually. (2) In provinces with rapid labor growth, water resources have a greater impact on economic growth. In provinces with low labor growth rates, the drag effect of water resources on economic growth is affected by the capital stock of the region. (3) Through the analysis of the water drag effect in different time periods, this paper finds that in some periods, the government’s mobilization of water resources for the economic growth in some regions will not only promote the transfer of labor between regions, but also cause changes in the regional water resources. According to the results of this paper, the following conclusions can be drawn: (1) It is necessary to vigorously develop water-saving agriculture, improve technical efficiency, and reduce the strong dependence of economic growth on water resources in the provinces which has a strong water drag effect on economic growth; (2) Provinces with moderate water resource constraints should take the lead in deploying strategic emerging industries, and accelerate the development of the tertiary industry; (3) Provinces with weakly water resource restrictions can promote the development of capital-based industries. Not only can the development of the economy be rational, but it can also reduce the economy’s dependence on resources, thereby achieving the sustainable use of water resources and sustainable economic growth.

scholarly journals Drag Effect of Water Consumption on Urbanization—A Case Study of the Yangtze River Economic Belt from 2000 to 2015

Water ◽  
2018 ◽  
Vol 10 (9) ◽  
pp. 1115 ◽  
Author(s):  
Min An ◽  
Van Butsic ◽  
Weijun He ◽  
Zhaofang Zhang ◽  
Teng Qin ◽  
...  
Keyword(s):  
Water Resource ◽  
Water Consumption ◽  
Yangtze River ◽  
Resource Constraints ◽  
Resource Curse ◽  
Drag Effect ◽  
Spatial Econometric ◽  
Effect Of Water ◽  
Cooperation Mechanism ◽  
Scarce Water

Urbanization is an engine of economic development, but this process is often constrained by increasingly scarce water resources. A model predicting the drag effect of water consumption on urbanization would be useful for future planning for sustainable water resource utilization and economic growth. Using panel data from 11 provinces in China’s Yangtze River economic belt (YREB) from 2000 to 2015, we apply Romer’s growth drag theory with spatial econometric models to quantitatively analyze the drag effect of water consumption on urbanization. The results show the following. (1) The drag effect of water consumption on urbanization has significant spatial correlation; the spatial Durbin model is the best model to calculate this spatial connection. (2) The spatial coefficient is 0.39 and the drag that is caused by water consumption on urbanization in the YREB is 0.574, which means that when spatial influences are considered, urbanization speed slows by 0.574% due to water consumption constraints. (3) Each region in the YREB has different water consumption patterns and structure; we further calculate each region’s water consumption drag on urbanization. We find that areas with high urbanization levels, like Shanghai (average 84.7%), have a lower water consumption drag effect (0.227), and they can avoid the “resource curse” of water resource constraints. However, some low-level urbanization provinces, like Anhui (average 39.3%), have a higher water consumption drag effect (1.352). (4) Our results indicate that the water drag effect is even greater than the drag effect of coal and land. Therefore, policies to increase urbanization should carefully consider the way that water constraints may limit growth. Likewise, our spatial model indicates that policy makers should work with neighboring provinces and construct an effective regional water cooperation mechanism.

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