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Industrial Agglomeration and Regional Economic Growth—Analysis of the Threshold Effect Based on Industrial Upgrading

Based on the data of 30 provinces (cities) in China (except Hong Kong, 
Macau, Taiwan, Tibet) from 2004 to 2017, using industrial upgrading as the 
threshold variable, the panel threshold effect model was used to analyze the 
relationship between industrial agglomeration and regional economic growth. The 
results show that industrial agglomeration can significantly promote regional 
economic growth. The impact of industrial agglomeration on economic growth has 
a threshold effect based on industrial upgrading. When industrial upgrading is 
within a higher threshold, the effect of industrial agglomeration on economic 
growth is more obvious. Aiming at the above conclusions, it is necessary to 
actively promote the upgrading of the industrial structure while promoting the 
industrial space agglomeration. Make industrial agglomeration and industrial 
upgrading better play the role of promoting economic growth.