Economic Growth Mechanism of County-to-District Conversion and Its Dialectical Relationship with City Shrinkage: Case Study of County-to-District Conversion in Hangzhou, China
Publication: Journal of Urban Planning and Development
Volume 146, Issue 4
Abstract
In China, county-to-district conversion (CTDC) is a major form of administrative division adjustment (ADA) and an important element of national regime policy. In this study, the authors used the synthetic control method to analyze the economic growth effect and mechanism of the CTDC that occurred in Xiaoshan and Yuhang in 2001, and to explore the dialectical relationship between CTDC and city shrinkage. The research results are as follows. First, the economic growth following CTDC in Xiaoshan and Yuhang exhibited different patterns of variation. Economic growth in Xiaoshan increased progressively from 2002 to 2012, and the difference in annual growth of per capita GDP between the actual Xiaoshan and synthetic Xiaoshan reached 5.77%. However, the economic effect of CTDC had a time lag in Yuhang, with the growth curves of actual Yuhang and synthetic Yuhang largely coinciding in 2002–2006. Since 2007, the difference of annual growth rate was 2.2%. Second, the reduced shielding effect of administrative boundaries is the key to greater economic growth after CTDC. Thus, CTDC stimulates economic growth indirectly via urban integration planning, amplification of consumption and urban investment, and retention of financial and administrative power. Third, for Hangzhou, a city with strong development, CTDC will not cause economic recession. However, it is not suitable to add municipal districts to shrinking cities by CTDC, because it has the risk of aggravating the unbalanced urban development. Fourth, the study provides evidence for evaluating policy effects of CTDC and explains China's city shrinkage and urbanization from the perspective of ADA.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
This work was supported by the National Natural Science Foundation of China (No. 41871151) and the Strategic Priority Research Program of the Chinese Academy of Sciences (No. XDA23020101).
References
Abadie, A., A. Diamond, and J. Hainmueller. 2010. “Synthetic control methods for comparative case studies: Estimating the effect of California’s tobacco control program.” J. Am. Stat. Assoc. 105 (490): 493–505. https://doi.org/10.1198/jasa.2009.ap08746.
Abadie, A., and J. Gardeazabal. 2003. “The economic costs of conflict: A case study of the Basque country.” Am. Econ. Rev. 93 (1): 113–132. https://doi.org/10.1257/000282803321455188.
Alesina, A., and E. Spolaore. 1997. “On the number and size of nations.” Q. J. Econ. 112 (4): 1027–1056. https://doi.org/10.1162/003355300555411.
Arenas, U., and O. Alonso. 2015. “Political-administrative division and political representation in the city government: A comparative, historical and territorial analysis of London, Medellín and Río de Janeiro.” Territorios 33: 123–156. https://doi.org/10.12804/territ33.2015.06.
Au, C. C., and J. V. Henderson. 2006. “How migration restrictions limit agglomeration and productivity in China.” J. Dev. Econ. 80 (2): 350–388. https://doi.org/10.1016/j.jdeveco.2005.04.002.
Bakarić, I. R. 2012. “A proposal for a new administrative-territorial division of the Republic of Croatia.” Econ. Res. 25 (2): 397–411. https://doi.org/10.1080/1331677X.2012.11517514.
Chen, G., and X. Li. 2017. “The reexamination of the administrative division adjustment and the economic development of Chongqing: An analysis based on labor productivity.” [In Chinese.] China Econ. Stud. (4): 40–51.
Chen, T., K. Y. Wang, and Y. F. Chen. 2018. “The influence and qualitative measure methods of administrative division adjustment on administrative region potential.” [In Chinese.] Sci. Geog. Sinica 38 (5): 654–661.
Chen, Y. F., and K. Y. Wang. 2018. “Analysis on the change pattern and causes of “Turning Counties (Cities) into District” in China since the reform and opening-up.” [In Chinese.] Urban Stud. (10): 41–50.
Cui, F. J., and X. Chen. 2012. “Regional economic development under the “province governing county” system—Taking Zhejiang Province as an example.” [In Chinese.] Econ. Geogr. 32 (9): 1–7.
Fan, S., L. Li, and X. Zhang. 2012. “Challenges of creating cities in China: Lessons from a short-lived county-to-city upgrading policy.” J. Comp. Econ. 40 (3): 476–491. https://doi.org/10.1016/j.jce.2011.12.007.
Feiock, R. C. 1994. “The political economy of growth management.” Am. Politics Q. 22 (2): 208–220. https://doi.org/10.1177/1532673X9402200205.
Gao, L. 2011. “The economic growth performance of jurisdiction consolidation in metropolis—A case study of the consolidation of Huangpu and Nanshi district in Shanghai.” [In Chinese.] Econ. Manage. J. 33 (5): 38–45.
Gao, L. L., and H. M. Sun. 2015. “How does adjustment of the administrative areas affect the regional economic growth—Evidence from the adjustment of administrative at prefecture-level cities and above.” [In Chinese.] Econo. Syst. Reform (5): 66–71.
Han, Y. H., L. X. Huang, and Y. Shu. 2014. “Analysis on the performance of county administrative division reform: Taking “Revocation of Cities to District” for example.” [In Chinese.] China J. Econ. (4): 49–67.
Hawkins, B. W., K. J. Ward, and M. P. Becker. 1991. “Governmental consolidation as a strategy for metropolitan development.” Public Adm. Q. 15 (2): 253–267.
Hopkins, L. 2001. Urban development: The logic of making plans. Washington, DC: Island Press.
Jacobs, A. J. 2004. “Federations of municipalities: A practical alternative to local government consolidations in Japan.” Governance 17 (2): 247–274. https://doi.org/10.1111/j.1468-0491.2004.00245.x.
Jiang, J. Z., and Y. Zhong. 2018. “The application of synthetic control method for casual inference in international relations research.” [In Chinese.] Int. Rev. (4): 84–103.
Li, Q., Y. L. Chen, and J. M. Liu. 2012. “On the development mode of Chinese urbanization.” [In Chinese.] Soc. Sci. China (7): 82–100.
Li, X., and X. X. Xu. 2015. “Impact analysis of turning counties (cities) into districts to the urban economic growth in China.” [In Chinese.] Acta Geog. Sinica 70 (8): 1202–1214.
Liu, J. D. 2006. “Perspective of the administrative region economy phenomenon in China’s transitional period—An introduction of human-economic geography with Chinese characteristics.” [In Chinese.] Econ. Geogr. 26 (6): 897–901.
Liu, J. D., and Q. Shu. 1996. “A new perspective of China’s regional economy—Administrative regional economy.” [In Chinese.] Reform Strategy (5): 1–4.
Lucy, W. H., and D. L. Phillips. 2000. Confronting suburban decline: Strategic planning for metropolitan renewal. Washington, DC: Island Press.
Marian, H., K. Pavel, B. Vladimir, and K. Michel. 2017. “The spatial equity principle in the administrative division of the Central European countries.” PLoS One 12 (11): e0187406. https://doi.org/10.1371/journal.pone.0187406.
Meeusen, W., and J. van Den Broeck. 1977. “Efficiency estimation from Cobb-Douglas production functions with composed error.” Int. Econ. Rev. 18 (2): 435–445. https://doi.org/10.2307/2525757.
Natalia, V. B., and M. Galina. 2015. “Influence of changes in administrative-territorial division of the Russian Federation on social and economic indicators.” Tomsk State Univ. J. (40): 190–197.
Redding, S. J., and D. M. Sturm. 2008. “The costs of remoteness: Evidence from the German division and re-unification.” Am. Econ. Rev. 98 (5): 1766–1797. https://doi.org/10.1257/aer.98.5.1766.
Shao, C. D., D. N. Su, and Q. Bao. 2018. “Growth performance evaluation of City-County merger under the Chinese style decentralization.” [In Chinese.] J. World Economy (10): 101–125.
Spolaore, E., A. Alesina, and R. Wacziarg. 2000. “Economic integration and political disintegration.” Am. Econ. Rev. 90 (5): 1276–1296. https://doi.org/10.1257/aer.90.5.1276.
Tang, W., and Y. Wang. 2015. “Administrative boundary adjustment and urbanization of population: Evidence from city-county merger in China.” [In Chinese.] Econ. Res. (9): 72–85.
Tatiana, S. 2013. “From the history of studying the administrative-territorial division of the Soviet Russia.” Novyi Istoricheskii Vestnik (36): 116–123.
Wagenaar, F. P. 2004. “Excises, postal services, oaths of office and property taxes: How small administrative adjustments led to large changes in intergovernmental relations.” Adm. Theory Praxis 26 (4): 545–565. https://doi.org/10.1080/10841806.2004.11029472.
Wang, F. L., and C. Y. Zhang. 2017. “Impacts of administrative division adjustment on housing price in urban China.” [In Chinese.] Geogr. Res. 36 (5): 913–925.
Wang, K. Y., and T. Chen. 2011. “The experience reference of administrative division adjustment in abroad and the apocalypses for China.” [In Chinese.] World Reg. Stud. 20 (2): 57–64.
Wang, K. Y., F. Y. Wang, and T. Chen. 2019. “The theory and measurement model of administrative region potential: A new explanation for the regional effect of administrative division adjustment using Chongqing city as a case study.” [In Chinese.] Acta Geog. Sinica 74 (12): 2495–2510.
Wang, W. Y. 2010. “Administrative division model in west countries and its enlightenment.” [In Chinese.] J. Changsha Univ. 24 (3): 51–53.
Wang, X. B., and X. P. Xie. 2012. “Regional market’s administrative integration and economic growth.” [In Chinese.] South China J. Econ. 30 (3): 23–36.
Xie, D. X. 2009. “Fast urbanized time administrative regionalization adjustment research.” [In Chinese.] Mod. Urban Res. 24 (4): 82–87.
Xie, D. X., J. Wen, and Q. Q. Wei. 2004. “Removing counties to regions and urban development.” [In Chinese.] Urban Plann. Forum (4): 20–22.
Ye, C. S., and J. Gao. 2017. “Economic performance of administrative division adjustment—Evidence from county to district.” [In Chinese.] Soc. Sci. Guangxi (1): 61–68.
Zhang, E. S. 2012. “Administrative division and adjustment building and regional disparities—The case of Hainan.” [In Chinese.] Res. Econ. Manage. (1): 54–61.
Zhang, X. L., Y. B. Liu, and C. C. Lv. 2016. “Background, recognition and characteristic analysis of city shrinkage in China.” [In Chinese.] J. Southeast Univ. 18 (4): 132–139.
Information & Authors
Information
Published In
Copyright
© 2020 American Society of Civil Engineers.
History
Received: Nov 14, 2019
Accepted: Jul 23, 2020
Published online: Oct 14, 2020
Published in print: Dec 1, 2020
Discussion open until: Mar 14, 2021
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.