The effect and its mechanism of turning county (county-level city) into urban district on the economic development in regions with lagging urbanization: Evidence from Northeast and Southwest China
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Abstract
Does the County to Urban District (CTD) and the County-level City to Urban District (CLTD) policy, uniformly promote economic growth across regions with lagging urbanization? This study utilizes panel data from 74 counties (county-level cities) in Southwest and Northeast China, covering the period from 2006 to 2022. It assesses the influence of the CTD and CLTD on urban economic development by conducting a comparative analysis between provincial and non-provincial capital cities. Results indicate that: (1) Both the CTD and CLTD not only stimulate economic development in most cities in regions with lagging urbanization, but also yield diverse effects across different regions. (2) The economic impact of CTD and CLTD is more pronounced in Northeast China, where the average "treatment effect" reaches 0.553, compared to an average "treatment effect" of 0.267 in Southwest China, making the treatment effect value in Northeast China is twice that of Southwest China. The growth rate of urban economies typically stabilizes or declines after a specific number of years following policy implementation, indicating short-term shocks in the influence of CTD and CLTD on economic growth. (3) The CTD and CLTD have a strong promotional effect on the economic development of provincial capital cities, with a stronger growth effect compared to municipal districts in non-provincial capital cities. For instance, the peak value of the policy dynamic effect in JiuTai District is as high as 1.004, while that in JiangChuan District is only 0.333. (4) The influence of CTD and CLTD on economic development can be attributed to four factors: policy, infrastructure, industry, and investment. These factors encompass an increase in fiscal revenue and fixed asset investment, enhancement of industrial capabilities, and improvement of employment and education levels, thereby promoting sustainable urbanization development continuously at the habitat level.
期刊介绍：
Habitat International is dedicated to the study of urban and rural human settlements: their planning, design, production and management. Its main focus is on urbanisation in its broadest sense in the developing world. However, increasingly the interrelationships and linkages between cities and towns in the developing and developed worlds are becoming apparent and solutions to the problems that result are urgently required. The economic, social, technological and political systems of the world are intertwined and changes in one region almost always affect other regions.
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