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De-localization of global cities: How advanced producer services exacerbate regional spatial inequality?

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  • Li, Jiaming
  • Liu, Jiachuan

Abstract

Advanced producer services (APS)—as key indicators of global city functions—reinforce the hub and control capacities of central cities within the global economy. However, their spatial benefits are unevenly distributed, often bypassing surrounding small- and medium-sized cities. This study investigates how the development of APS in 35 Chinese cities at or above the "sufficiency" level of global integration contributes to regional spatial inequality. We emphasize the role of de-localization processes, whereby economic functions and flows are increasingly detached from local-regional contexts. Our findings reveal three key insights:(1) The growth of APS intensifies center–periphery inequality, reinforcing the dominance and polarization of core global cities; (2) Cross-regional economic linkages—accounting for approximately 15% of spatial disparity—exacerbate inequality beyond conventional siphoning effects, highlighting the structural impact of interurban externalities; (3) Transportation infrastructure, particularly increased cross-city traffic flows, compounds disparities by facilitating the agglomeration of APS in core cities. This integrative approach sheds light on the spatial mechanisms through which global city development reshapes regional economic balance. Our findings offer policy insights for mitigating urban polarization and promoting more equitable spatial development in rapidly globalizing economies.

Suggested Citation

  • Li, Jiaming & Liu, Jiachuan, 2026. "De-localization of global cities: How advanced producer services exacerbate regional spatial inequality?," Land Use Policy, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:lauspo:v:169:y:2026:i:c:s0264837726002243
    DOI: 10.1016/j.landusepol.2026.108140
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