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Are small towns really inefficient? A data envelopment analysis of sampled towns in Jiangsu province, China

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  • Yin, Xu
  • Wang, Jing
  • Li, Yurui
  • Feng, Zhiming
  • Wang, Qianyi

Abstract

Small towns, the nodes connecting cities and villages, play an important role in urbanization and rural development. However, it is generally believed that small towns lack economic efficiency therefore are excluded from main-stream urbanization of China. Based on the socio-economic statistics of 109 towns in 7 counties of Jiangsu province, this paper evaluates the DEA efficiency of small towns with different classifications, and compares the DEA efficiency of small towns with 21 county-towns, then analyzes the economic density of small towns and 283 prefecture-level cities with different scales. The results show that: (1) There are significant differences in the efficiency characteristics of different types of towns. Approximately 80% of the sampled towns could improve their efficiency by intensive resource-use and production scale expansion; (2) Although county-towns obtained more resources, their efficiency is not significantly superior than other types of towns (P > 0.05); (3) Small towns perform well in terms of economic density, which is not significantly different from small and medium-sized cities, but significantly lower than large cities with population of municipal district > 1 million. These findings challenge the stereotypes of towns in driving urbanization. The authors argue that the economic development level, input-output efficiency and economic density of small towns can also be high, shaping their important role in integrating urban and rural development, accelerating new-type urbanization and promoting rural vitalization strategy.

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  • Yin, Xu & Wang, Jing & Li, Yurui & Feng, Zhiming & Wang, Qianyi, 2021. "Are small towns really inefficient? A data envelopment analysis of sampled towns in Jiangsu province, China," Land Use Policy, Elsevier, vol. 109(C).
    • Handle: RePEc:eee:lauspo:v:109:y:2021:i:c:s0264837721003136
    DOI: 10.1016/j.landusepol.2021.105590
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    2. Zhi Qiu & Yue Wang & Jie Wang & Zhu Wang & Yi Zhou, 2023. "Needs Hierarchy for Public Service Facilities and Guidance-Control Programming in Small Chinese Towns Influenced by Complex Urbanization of Residents: The Evidence from Zhejiang," Land, MDPI, vol. 12(6), pages 1-27, June.
    3. Marcin Bogdański & Marcin Janusz, 2022. "Small Towns’ Functions as a Determinant of the Standard of Living in Rural Areas—An Example from Poland," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    4. Yongfang Peng & Yingying Fan & Yi Liang, 2021. "A Green Technological Innovation Efficiency Evaluation of Technology-Based SMEs Based on the Undesirable SBM and the Malmquist Index: A Case of Hebei Province in China," Sustainability, MDPI, vol. 13(19), pages 1-19, October.
    5. Dekai Tao & Wenli Zhou, 2022. "An Evaluation and Optimization of Green Development Strategy for the Nanjing-Hangzhou Eco-Economic Zone in China," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
    6. Xiao Gong & Xiaolin Zhang & Jieyi Tao & Hongbo Li & Yunrui Zhang, 2022. "An Evaluation of the Development Performance of Small County Towns and Its Influencing Factors: A Case Study of Small Towns in Jiangyin City in the Yangtze River Delta, China," Land, MDPI, vol. 11(7), pages 1-22, July.
    7. Wang, Jieyong & Qu, Lulu & Li, Yurui & Feng, Weilun, 2023. "Identifying the structure of rural regional system and implications for rural revitalization: A case study of Yanchi County in northern China," Land Use Policy, Elsevier, vol. 124(C).

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