Abstract/Summary

This study investigates the role of network capital in urban development by utilizing Mergers & Acquisitions (M&As) as a flow metric to construct China’s inter-urban capital flow network. Firstly, an uneven geography of network capital is revealed, indicating regional disparity. Secondly, we identify a positive impact of outward- and gateway-network capital on urban economic growth. Additionally, the impact of the emergent network capital is moderated by local human capital and knowledge stock, indicating a networked agglomeration economy. The findings support a coordinative and place-based policy for fostering urban and regional development.