Adjustment of Administrative Divisions and Upgrading of Industrial Structure in Hefei Metropolitan Area

Administrative regions are an important environment for the operation of China’s market economy. The relevant economic subjects cannot predict the policy of adjustment of administrative divisions and carry out conscious migration behavior, adjustment of administrative divisions can be regarded as a quasi-natural experiment. The three cities of Hefei, Wuhu, and Ma’anshan, which are directly related to the adjustment of the administrative division of Chaohu, are taken as the treatment group, and the seven adjacent cities of Lu’an, Huainan, Chuzhou, Bengbu, Anqing, Chizhou, and Tongling are taken as the control group. Differences-in-Differences method and relevant control variables affecting the upgrading of industrial structure are used to test. The test results show that "Partitions of Chaohu" has a significant industrial structure upgrading effect by promoting the optimization of spatial layout, the cross-regional flow of production factors and the effective management of Chaohu Lake Basin. At the same time, the increase of total retail sales of consumer goods, urban fixed assets investment, public utility expenses in science, education, culture and health, and population plays a significant positive role in promoting the upgrading of industrial structure, while foreign direct investment plays a certain inhibition role in the upgrading of industrial structure. In order to meet the ever-developing space demands and enhance the impact on surrounding areas, the Hefei metropolitan area should be driven by technological innovation, strengthen the integration of industrial chains, improve the business environment and transportation network, and continuously promote the upgrading of industrial structure and the formation and development of new productive forces.