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Urban spatial restructuring and entrepreneurship: Evidence from polycentricity

Author

Listed:
  • Xue, Jiayi
  • Liu, Jinshan
  • Zuo, Wenbin

Abstract

This paper empirically examines the impact of polycentric urban spatial structures on entrepreneurship and the underlying mechanisms. Using high-resolution LandScan population data from 2003 to 2022, we delineate urban boundaries and measure polycentricity with an ESDA approach. We empirically find that cities with higher polycentricity exhibit significantly stronger entrepreneurial activity. These results remain robust across multiple robustness checks. Mechanism analyses indicate that polycentric development promotes entrepreneurship by improving urban transportation connectivity, enhancing resource allocation efficiency, and alleviating land price pressures in core areas. Heterogeneity analyses reveal that the effects are more pronounced in large, highly agglomerated cities particularly in eastern regions. The positive impact is also more pronounced in industries that are spatially sensitive and more exposed to government regulation. Overall, the findings suggest that polycentric spatial planning can effectively foster entrepreneurial vitality and provide important implications for urban development policies tailored to city size and developmental stage.

Suggested Citation

  • Xue, Jiayi & Liu, Jinshan & Zuo, Wenbin, 2026. "Urban spatial restructuring and entrepreneurship: Evidence from polycentricity," Economic Modelling, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:ecmode:v:161:y:2026:i:c:s0264999326001616
    DOI: 10.1016/j.econmod.2026.107632
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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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