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Urban Economic Growth in China: Theory and Evidence

Author

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  • Shuanglin Lin

    (Department of Economics, University of Nebraska at Omaha, Omaha, Nebraska 68182, USA, shuanglin_Lin@unomaha.edu)

  • Shunfeng Song

    (Department of Economics, University ofNevada, Reno, Nevada 89557-0207, USA, song@unr.nevada.edu)

Abstract

This paper analyses the relationship between per capita GDP growth and investment, foreign direct investment, labour force growth, government expenditure and urban infrastructure based on the data for 189 large and medium-sized Chinese cities for the period of 1991-98. Cross-sectional analyses indicate that several factors, such as foreign investment, paved roads and government expenditure on science and technology are positively related to per capita GDP growth, while the overall size of government, measured by total government spending share in GDP, appears negatively related to per capita GDP growth. Contrary to the literature on economic growth, total investment share in GDP is insignificantly related to per capita GDP growth. Also, there is no clear evidence of convergence in per capita GDP among Chinese cities.

Suggested Citation

  • Shuanglin Lin & Shunfeng Song, 2002. "Urban Economic Growth in China: Theory and Evidence," Urban Studies, Urban Studies Journal Limited, vol. 39(12), pages 2251-2266, November.
    • Handle: RePEc:sae:urbstu:v:39:y:2002:i:12:p:2251-2266
    DOI: 10.1080/0042098022000033854
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    References listed on IDEAS

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    Cited by:

    1. Feng, Qu & Wu, Guiying Laura, 2018. "On the reverse causality between output and infrastructure: The case of China," Economic Modelling, Elsevier, vol. 74(C), pages 97-104.
    2. Chun‐Yu Ho & Dan Li, 2010. "Spatial Dependence and Divergence across Chinese Cities," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 386-403, May.
    3. Gordon Anderson & Ying Ge, 2004. "Do Economic Reforms Accelerate Urban Growth? The Case of China," Urban Studies, Urban Studies Journal Limited, vol. 41(11), pages 2197-2210, October.
    4. Hooi Lean, Hooi & Huang, Wei & Hong, Junjie, 2014. "Logistics and economic development: Experience from China," Transport Policy, Elsevier, vol. 32(C), pages 96-104.
    5. Lichtenberg, Erik & Ding, Chengri, 2009. "Local officials as land developers: Urban spatial expansion in China," Journal of Urban Economics, Elsevier, vol. 66(1), pages 57-64, July.
    6. Yusuf, Shahid & Nabeshima, Kaoru, 2006. "Two decades of reform : the changing organization dynamics of Chinese industrial firms," Policy Research Working Paper Series 3806, The World Bank.
    7. Alfred Wu & Mi Lin, 2012. "Determinants of government size: evidence from China," Public Choice, Springer, vol. 151(1), pages 255-270, April.
    8. Fan, Shenggen & Chan-Kang, Connie, 2004. "Road development, economic growth, and poverty reduction in China," DSGD discussion papers 12, International Food Policy Research Institute (IFPRI).
    9. Ying Ge, 2006. "The Effect of Foreign Direct Investment on the Urban Wage in China: An Empirical Examination," Urban Studies, Urban Studies Journal Limited, vol. 43(9), pages 1439-1450, August.
    10. Liu, Yongzheng & Alm, James, 2016. "“Province-Managing-County” fiscal reform, land expansion, and urban growth in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 82-100.
    11. Ding, Chengri & Lichtenberg, Erik, 2008. "Using Land to Promote Urban Economic Growth in China," Working Papers 36748, University of Maryland, Department of Agricultural and Resource Economics.
    12. Zhu, Junbing & Grigoriadis, Theocharis, 2020. "Chinese dialects, revolutionary war & economic performance," Discussion Papers 2020/7, Free University Berlin, School of Business & Economics.
    13. Canfei He & Fenghua Pan, 2010. "Economic Transition, Dynamic Externalities and City-industry Growth in China," Urban Studies, Urban Studies Journal Limited, vol. 47(1), pages 121-144, January.
    14. Jing Wu & Yongheng Deng & Jun Huang & Randall Morck & Bernard Yeung, 2013. "Incentives and Outcomes: China's Environmental Policy," NBER Working Papers 18754, National Bureau of Economic Research, Inc.
    15. Suchi Kapoor Malhotra & Howard White & Nina Ashley O. Dela Cruz & Ashrita Saran & John Eyers & Denny John & Ella Beveridge & Nina Blöndal, 2021. "Studies of the effectiveness of transport sector interventions in low‐ and middle‐income countries: An evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(4), December.
    16. Xiao Tan, 2017. "Explaining provincial government health expenditures in China: evidence from panel data 2007–2013," China Finance and Economic Review, Springer, vol. 5(1), pages 1-21, December.
    17. Fan, Shenggen & Chan-Kang, Connie, 2008. "Regional road development, rural and urban poverty: Evidence from China," Transport Policy, Elsevier, vol. 15(5), pages 305-314, September.
    18. Ben C. Arimah, 2005. "What Drives Infrastructure Spending in Cities of Developing Countries?," Urban Studies, Urban Studies Journal Limited, vol. 42(8), pages 1345-1368, July.
    19. Florin Teodor Boldeanu & Ileana Tache, 2016. "A Regional Approach To The Metropolitan Economic Grwoth: Evidence From The European Union," Journal of Smart Economic Growth, , vol. 1(1), pages 29-72, August.
    20. Shuo Chen & Xiaobo He, 2015. "Road to success? The effects of road toll on economic growth in China," Applied Economics Letters, Taylor & Francis Journals, vol. 22(2), pages 158-162, January.

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