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A blessing or curse: the spillover effects of city–county consolidation on local economies

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  • Nanxin Deng
  • Bo Feng
  • Mark D. Partridge

Abstract

Previous studies suggest that ‘city–county consolidation’ has significant positive impacts on urban economic growth. Yet, the specific spillover effects on surrounding rural areas and the overall net impact on larger regions have not been fully investigated. We propose a difference-in-difference framework and find that consolidations have led to a significant loss of per capita gross domestic product (GDP) in nearby rural areas. The backwash mainly comes from the reduction of rural industrial output. We also find that this policy has an insignificant impact at the prefecture level, suggesting such consolidations do not promote aggregate growth and that any gains in urban areas are offset by losses in surrounding rural regions.

Suggested Citation

  • Nanxin Deng & Bo Feng & Mark D. Partridge, 2022. "A blessing or curse: the spillover effects of city–county consolidation on local economies," Regional Studies, Taylor & Francis Journals, vol. 56(9), pages 1571-1588, September.
    • Handle: RePEc:taf:regstd:v:56:y:2022:i:9:p:1571-1588
    DOI: 10.1080/00343404.2021.1995600
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    Cited by:

    1. Youlin Chen & Lei Wang & Peiheng Yu & Ning Nie & Xuan Yang & Yiyun Chen, 2023. "Spatiotemporal Linkages between Administrative Division Adjustment and Urban Form: Political Drivers of the Urban Polycentric Structure," Land, MDPI, vol. 12(9), pages 1-27, August.
    2. Luisa Alamá-Sabater & Miguel Ángel Márquez & Emili Tortosa-Ausina & Júlia Cravo, 2022. "Are semi-urban spillovers the answer to left-behind places in rural Europe? The case of the Portuguese municipalities," Working Papers 2022/14, Economics Department, Universitat Jaume I, Castellón (Spain).

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