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Total Investment in Fixed Assets and the Later Stage of Urbanization: A Case Study of Shanghai

Author

Listed:
  • Yulong Luo

    (School of Architecture and Urban Planning, Guangdong University of Technology, Guangzhou 510006, China)

  • Can Wang

    (Media Lab, Massachusetts Institute of Technology, Cambridge, MA 02139, USA
    School of Architecture and Urban Planning, Tongji University, Shanghai 200092, China)

  • Chen Chen

    (Institute of Urban and Demographic Studies, Shanghai Academy of Social Sciences, Shanghai 200020, China)

  • Kangle Ding

    (School of Civil Engineering and Architecture, Zhejiang University of Science and Technology, Hangzhou 310023, China)

  • Weiliang Zeng

    (School of Automation, Guangdong University of Technology, Guangzhou 510006, China)

Abstract

After more than 40 years’ opening-up and reform, China’s urbanization has entered a new type of urbanization. In order to reveal the rule of different infrastructure investments and urbanization relationships, this paper uses Shanghai as a case by applying econometric methods to study the detailed relationship between different indicators from 1990 to 2019. Firstly, we quantify that each variable has a long-term co-integration relationship with urbanization by co-integration test. And we found that the real estate is a main driving force of urbanization while the construction project investment plays an important role in promoting the urbanization rate in the studied period. Secondly, according to the Granger test, our study illustrates that each variable has a bilateral Granger relationship with urbanization while the urbanization rate has more Granger causality impact on the studied variables. Thirdly, based on impulse response test and variance decomposition analysis, we found that urbanization rate with other variables accounts for the majority of the percentage of impacts while the total investment in fixed assets and its three categories contribute a small amount to the urbanization rate. Finally, we propose policy suggestions to strengthen healthy urbanization development in Shanghai.

Suggested Citation

  • Yulong Luo & Can Wang & Chen Chen & Kangle Ding & Weiliang Zeng, 2021. "Total Investment in Fixed Assets and the Later Stage of Urbanization: A Case Study of Shanghai," Sustainability, MDPI, vol. 13(7), pages 1-29, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:7:p:3661-:d:524169
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