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City Size, Population Concentration and Productivity: Evidence from China

Author

Listed:
  • Jie Shen
  • Chunlai Chen
  • Mengyu Yang
  • Keyun Zhang

Abstract

This paper investigates the impact of China's city size and urban population concentration on city productivity by developing a distinctive index based on global nighttime light data. Using the panel data of 280 prefecture cities from 2004 to 2013 and employing dynamic system generalized method of moments and panel threshold model regression techniques, our results show that city size has a positive impact on city productivity; therefore, cities in China still have the potential to expand. While moderate urban population concentration can benefit city productivity, excessively concentrated urban population distribution may impede the growth of city productivity. We also find that the level of labor income significantly affects the impacts of urban agglomeration on labor productivity. Therefore, our results imply that city development policies should focus more on how to appropriately allocate economic activities and adjust population distribution in urban areas according to different stages of economic development.

Suggested Citation

  • Jie Shen & Chunlai Chen & Mengyu Yang & Keyun Zhang, 2019. "City Size, Population Concentration and Productivity: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(1), pages 110-131, January.
    • Handle: RePEc:bla:chinae:v:27:y:2019:i:1:p:110-131
    DOI: 10.1111/cwe.12270
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    3. Xiong, Jiacai & Yang, Zelin & Wang, Xin & Chan, Kam C., 2023. "Does dialect diversity affect entrepreneurial activities? Evidence from China," Economic Modelling, Elsevier, vol. 128(C).
    4. Yuxi Liu & Rizhao Gong & Wenzhong Ye & Changsheng Jin & Jianxin Tang, 2022. "Urban Spatial Structure and Water Ecological Footprint: Empirical Analysis of the Urban Agglomerations in China," Sustainability, MDPI, vol. 14(21), pages 1-14, October.
    5. Wei Zou & Fei Yang, 2024. "Does City Shape Affect China's Economic Development?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(1), pages 21-56, January.
    6. Huang, Ruting & Yao, Xin, 2024. "City size and energy efficiency of Chinese manufacturing firms: An empirical study from a city characteristic perspective," Energy Economics, Elsevier, vol. 129(C).
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    8. Xiao Dai & Liang Yan, 2020. "The Spatial Correlation and Explanation of the Evolution of China’s Regional Human Capital Structure—Based on Network Analysis Method," Sustainability, MDPI, vol. 13(1), pages 1-20, December.
    9. P. V. Druzhinin, 2022. "Development of the Capital Cities of Russian Regions and Their Impact on Regional Economies," Studies on Russian Economic Development, Springer, vol. 33(2), pages 169-175, April.

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