Study on the Correlation between Population Agglomeration and Common Prosperity in Wenzhou based on Mediation Verification Effects

Abstract

Solidly promoting common prosperity is an intrinsic requirement for Wenzhou’s implementation of the “Double Ten Thousand Strategy.” This paper views population agglomeration as a comprehensive process that encompasses both dynamic mobility and static spatial distribution. From the dual perspectives of “making the pie bigger” (expanding economic scale) and “dividing the pie well” (optimizing wealth distribution), we construct a comprehensive index of common prosperity and empirically examine the impact of population agglomeration on common prosperity, as well as its underlying transmission mechanisms, using relevant panel data from Wenzhou. The baseline regression results indicate that an increase in population agglomeration significantly boosts Wenzhou’s level of common prosperity, with the marginal effect of making the pie bigger being greater than that of dividing it well. Mediation effect tests confirm that regional innovation levels play a significant mediating role in the process by which population agglomeration empowers common prosperity. Moreover, heterogeneity analysis reveals that this empowering effect exhibits pronounced imbalances between central towns and mountainous counties. This study provides empirical evidence and policy implications for Wenzhou to optimize its spatial population distribution and build a model city for common prosperity supported by high-quality population development.