IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v30y2026i3p1973-1999.html

Development Zones and Key Industries Resource Allocation Efficiency in China

Author

Listed:
  • Qiangmin Xi
  • Lin Mei
  • Ruidong Sun

Abstract

Development zone play a key role in improving resource allocation efficiency. However, development zone policy preference toward key industries causes resource reallocation both within and across industries. Using propensity score matching, staggered difference‐in‐difference, instrumental variable methods and Cox proportional risk model, this study explores the impact mechanism of development zone policies on key industries' resource allocation efficiency at the county and firm levels. The results show that (1) development zone policies positively affect key industries' resource allocation efficiency; the effect is strengthened when key industries correspond to local comparative advantages or are consistent with key industries of the central and local governments. (2) Development zone offer greater financial subsidies and tax incentives to efficient firms in key industries than in non‐key industries. Efficient firms in key industries can increase factor input, production, and output share. The strong competitive effect from the agglomeration forces inefficient firms' withdrawal and efficient firms' entry, thereby promoting overall resource allocation efficiency.

Suggested Citation

  • Qiangmin Xi & Lin Mei & Ruidong Sun, 2026. "Development Zones and Key Industries Resource Allocation Efficiency in China," Review of Development Economics, Wiley Blackwell, vol. 30(3), pages 1973-1999, August.
    • Handle: RePEc:bla:rdevec:v:30:y:2026:i:3:p:1973-1999
    DOI: 10.1111/rode.70093
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.70093
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.70093?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:30:y:2026:i:3:p:1973-1999. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.