The Impact of Industrial Linkage Structures on Urban Economic Resilience in China in the Context of the COVID-19 Shock

ABSTRACT

The structures of industrial linkages form an essential basis for the economy and have an important impact on urban economic resilience. By analyzing the impact of COVID-19 on China's urban economy in 2020, this study uses China's national input-output table to measure the centrality and diversity of industrial linkage structures. Extracted data from 298 cities in China are used to explore the impact of centrality and diversity on urban economic resilience. The results show that the cities in East China, Central China, and the Chengdu-Chongqing area in western China have a high centrality with respect to industrial linkage structures. Cities in the Yangtze River Delta, Pearl River Delta, the middle reaches of the Yangtze River city cluster, and the Chengdu-Chongqing city cluster have a high diversity of industrial linkages structures. During the shock of the COVID-19 pandemic, most cities in China have shown high economic resilience. For cities across the country, diversity shows a significant and positive correlation with economic resilience, and centrality shows a significant and positive correlation with economic resilience. The latter displays an inverted U-shaped relationship between centrality and economic resilience. For cities with different population sizes, there are differences in the impacts of centrality and diversity on urban economic resilience. Different industrial policies can be developed to adjust the centrality and diversity of the cities to enhance urban economic resilience.