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Does urban shrinkage lower labor productivity? The role of spatial expansion

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  • Zhuqing Yang
  • Yuanyuan Zhu
  • Yulin Zhang

Abstract

Urban shrinkage in China displays a unique pattern to other contexts. Cities experiencing continuous population loss along with spatial expansion trigger a paradox in Chinese urbanization. This paper applies data from the national population census and city statistical yearbook in 2000 and 2010 for all 255 prefectural level cities to examine the relationship between the spatial expansion in shrinking cities and urban labour productivity. We find that this paradox over population loss with spatial expansion impedes the improvement of local labour productivity. To deal with the potential endogeneity problem, we also adopt the instrumental variable approach as robustness check. By using the historical population size and density in China as the instruments for our targeted variable, our main findings in OLS regressions still hold. La contracción urbana en China muestra un patrón único en comparación con otros contextos. Las ciudades que experimentan una continua pérdida de población en paralelo a una expansión espacial desencadenan una paradoja en la urbanización china. En este artículo se aplican los datos del censo nacional de población y del anuario estadístico de las ciudades en 2000 y 2010 para las 255 ciudades de nivel de prefectura, a fin de examinar la relación entre la expansión espacial en las ciudades en declive y la productividad laboral urbana. Se descubrió que esta paradoja de pérdida de población en medio de una expansión espacial impide la mejora de la productividad laboral local. Para tratar el problema de la endogeneidad potencial, se adoptó también el enfoque de variables instrumentales como verificación de la robustez. Se utilizó el tamaño y la densidad de la población histórica de China como instrumentos para la variable objetivo, gracias a lo cual se determinó que los principales hallazgos en las regresiones de MCO siguen siendo válidos. 中国の都市縮小は、他の状況に特有のパターンを示している。空間的拡大に伴い人口が継続的に減少している都市は、中国の都市化における逆説的問題を生み出している。本稿では、255すべての県レベルの都市について2000年と2010年の国勢調査と中国城市統計年鑑のデータを使用して、縮小する都市の空間的拡大と都市部の労働生産性との関連性を検討した。空間的拡大に伴う人口減少という逆説的問題が、地域の労働生産性の改善を妨げることを見出した。潜在的な内生性問題に対応するため、頑健性チェックとして操作変数法的アプローチも採用した。目標変数のための操作変数として中国における歴史的な人口の規模と密度を使用することによって、我々がOLS回帰で得た主要な知見は依然として有効となる。

Suggested Citation

  • Zhuqing Yang & Yuanyuan Zhu & Yulin Zhang, 2022. "Does urban shrinkage lower labor productivity? The role of spatial expansion," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 106-117, November.
  • Handle: RePEc:bla:rgscpp:v:14:y:2022:i:s2:p:106-117
    DOI: 10.1111/rsp3.12275
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