Influence mechanisms of financial and manufacturing co-agglomeration on green economy efficiency from multiple perspectives

Financial and manufacturing co-agglomeration is conducive to exerting the positive externalities of the agglomeration economy and provides an essential approach to promoting green development. Employing agglomeration economic theory and extending the panel model to the spatial dimension, this study examines the agglomeration and spatial spillover effects of financial and manufacturing co-agglomeration on China's green economy efficiency (GEE), utilizing panel data spanning 2003 to 2019 across 285 cities. First, we found that the spatial distribution of financial and manufacturing co-agglomeration presents a ladder-like feature from inland regions to coastal areas through exploratory spatial and temporal analysis. Second, by using the spatial Durbin model, we found that financial and manufacturing co-agglomeration significantly enhances local GEE, it also provides a positive spatial spillover effect on the GEE of neighboring areas, mainly through geographic channels. Third, employing the mediation effect model, we also found that financial and manufacturing co-agglomeration promotes GEE through technological innovation, enhanced market potential, and reduced carbon emissions. Fourth, the threshold effect analysis shows that appropriate government intervention positively promotes financial and manufacturing co-agglomeration in enhancing GEE, while excessive intervention hinders GEE growth. With greater openness to the outside world, financial and manufacturing co-agglomeration significantly promotes GEE. Moreover, the level of financial development has a U-shaped threshold effect, impeding and then boosting GEE. Furthermore, financial and manufacturing co-agglomeration in eastern and central regions and non-resource-based cities has a significant positive direct effect and spatial spillover effect on GEE. This study provides significant references and evidence in favor of increased financial support for high-quality manufacturing development and the upgrading of China's industrial structure.