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How Does Urban-Rural Capital Flow Affect Rural Reconstruction near Metropolitan Areas? Evidence from Shanghai, China

Author

Listed:
  • Xiaoping Zhou

    (School of Government, Beijing Normal University, Beijing 100875, China)

  • Xiaotian Li

    (School of Government, Beijing Normal University, Beijing 100875, China)

  • Xiaokun Gu

    (School of International and Public Affairs, Shanghai Jiao Tong University, Shanghai 200030, China
    China Institute for Urban Governance, Shanghai Jiao Tong University, Shanghai 200030, China)

Abstract

Capital outflow during industrialization and urbanization is a primary reason for global rural recession, and China is no exception. Since China focuses on the integrated development of urban and rural areas, urban-rural capital flow affects the transformation and sustainable development of rural areas. However, few studies have focused on this issue. Based on long-term field observations of Wufang Village in Shanghai, we established an analytical framework to describe how urban-rural capital flow promotes rural reconstruction. The research results show that the influx of urban industrial and commercial capital results in market-oriented organization and reconstruction focusing on land, industry, and capital: (1) Land-use optimization changes the land ownership and spatial structure of rural areas and improves the spatial value of rural areas. (2) Industrial development is focused on diverse development and the integration of primary, secondary, and tertiary industries in rural areas. (3) Capital investment is performed by a consortium of state-owned enterprises, private enterprises, and rural collective enterprises—which jointly invest, obtain revenue, and share profits—while considering the balance between attracting capital to rural areas and achieving independent development. The experience of Wufang Village has implications for the rural transformation policies of other large cities in China and other countries in Asia and Africa during urbanization.

Suggested Citation

  • Xiaoping Zhou & Xiaotian Li & Xiaokun Gu, 2023. "How Does Urban-Rural Capital Flow Affect Rural Reconstruction near Metropolitan Areas? Evidence from Shanghai, China," Land, MDPI, vol. 12(3), pages 1-16, March.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:3:p:620-:d:1088320
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    References listed on IDEAS

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