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From agglomeration to dispersion: How does China's noncapital functions' relief affect regional development?

Authors :
Yuan, Bo
Jing, Kecen
Liu, Yuhai
Source :
Journal of Regional Science. Jun2024, Vol. 64 Issue 3, p595-620. 26p.
Publication Year :
2024

Abstract

Agglomeration economies can bring about positive externalities, while excessive agglomeration backfires. However, existing literature on place‐based policies mainly focuses on policies that enhance agglomeration economies. Few studies discuss dispersion policies coping with the negative externality from excessive agglomeration. Owing to the unclear effects of dispersion policies, we conduct empirical research on the noncapital function relief (NCFR) policy, which is implemented to decrease the agglomeration in Beijing, the capital of China, and promote the development of surrounding areas. Exploiting the difference‐in‐difference model, we find that the NCFR policy implementation significantly facilitates the economic growth of the surrounding areas of Beijing. Changes in the distribution of new firm entry and population are two main channels, while no significant effect on the productivity is found. Furthermore, areas that are less‐developed could benefit more from the NCFR policy. Our findings may enlighten other developing countries in urban economic management. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00224146
Volume :
64
Issue :
3
Database :
Academic Search Index
Journal :
Journal of Regional Science
Publication Type :
Academic Journal
Accession number :
177798368
Full Text :
https://doi.org/10.1111/jors.12684