IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v24y2022i5d10.1007_s10668-021-01714-4.html
   My bibliography  Save this article

What factors have driven urbanization in China?

Author

Listed:
  • Jiahong Guo

    (Minzu University of China)

  • Zhongqi Yu

    (Tsinghua University)

  • Zihao Ma

    (Minzu University of China)

  • Duanyang Xu

    (CAS)

  • Shixiong Cao

    (Minzu University of China)

Abstract

Urbanization is an important engine of modernization and economic growth, and appears to be an inevitable trend during the development of human society. We combined economic, population, and land urbanization factors to develop a comprehensive indicator, the comprehensive level of urbanization (CLU). We then used 10 sub-indicators from four dimensions (economic, political, social, and resource endowment) and panel data from 30 Chinese provinces from 2000 to 2018 to conduct panel quantile regressions that accounted for the heterogeneity of the data and a contribution analysis to determine the key factors that are driving CLU. We found that the industrial structure and marketization (the development of market mechanisms) were important factors that increased CLU, and the contribution of marketization increased with increasing quantile, whereas China’s land finance model (in which provinces raise operating funds through land sales) decreased CLU in regions where urbanization had progressed most. Therefore, accelerating market development, reducing the government’s reliance on the land finance model as urbanization matured, and improving the industrial structure by promoting industrial transformation through improved education and technology will be the keys to achieving high-quality urbanization in the future. The successes and failures of China’s urbanization process will provide lessons for other developing countries.

Suggested Citation

  • Jiahong Guo & Zhongqi Yu & Zihao Ma & Duanyang Xu & Shixiong Cao, 2022. "What factors have driven urbanization in China?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 6508-6526, May.
    • Handle: RePEc:spr:endesu:v:24:y:2022:i:5:d:10.1007_s10668-021-01714-4
    DOI: 10.1007/s10668-021-01714-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-021-01714-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-021-01714-4?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhikai Wang, 2006. "The Growth of China's Private Sector: A Case Study of Zhejiang Province," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(3), pages 109-120, May.
    2. Davis, James C. & Henderson, J. Vernon, 2003. "Evidence on the political economy of the urbanization process," Journal of Urban Economics, Elsevier, vol. 53(1), pages 98-125, January.
    3. Weiming Li & Zhaoyang Cai & Shixiong Cao, 2021. "What has caused regional income inequality in China? Effects of 10 socioeconomic factors on per capita income," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13403-13417, September.
    4. Zheng, Wei & Walsh, Patrick Paul, 2019. "Economic growth, urbanization and energy consumption — A provincial level analysis of China," Energy Economics, Elsevier, vol. 80(C), pages 153-162.
    5. Deng, Xiangzheng & Huang, Jikun & Rozelle, Scott & Uchida, Emi, 2008. "Growth, population and industrialization, and urban land expansion of China," Journal of Urban Economics, Elsevier, vol. 63(1), pages 96-115, January.
    6. Galvao Jr., Antonio F., 2011. "Quantile regression for dynamic panel data with fixed effects," Journal of Econometrics, Elsevier, vol. 164(1), pages 142-157, September.
    7. Joseph E. Stiglitz & Shahid Yusuf, 2001. "Rethinking the East Asian Miracle," World Bank Publications - Books, The World Bank Group, number 13969.
    8. XuYi & Bas van Leeuwen & Jan Luiten van Zanden, 2015. "Urbanization in China, ca. 1100–1900," Working Papers 0063, Utrecht University, Centre for Global Economic History.
    9. Moomaw, Ronald L. & Shatter, Ali M., 1996. "Urbanization and Economic Development: A Bias toward Large Cities?," Journal of Urban Economics, Elsevier, vol. 40(1), pages 13-37, July.
    10. Ivan A. Canay, 2011. "A simple approach to quantile regression for panel data," Econometrics Journal, Royal Economic Society, vol. 14(3), pages 368-386, October.
    11. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
    12. Peter Kuhn & Kailing Shen, 2015. "Do employers prefer migrant workers? Evidence from a Chinese job board," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-31, December.
    13. Cai, Zhaoyang & Liu, Qing & Cao, Shixiong, 2020. "Real estate supports rapid development of China's urbanization," Land Use Policy, Elsevier, vol. 95(C).
    14. Huiqin Jiang & Xiao Zhang & Xinxiao Shao & Jianqiang Bao, 2018. "How Do the Industrial Structure Optimization and Urbanization Development Affect Energy Consumption in Zhejiang Province of China?," Sustainability, MDPI, vol. 10(6), pages 1-12, June.
    15. Liu, Yansui, 2018. "Introduction to land use and rural sustainability in China," Land Use Policy, Elsevier, vol. 74(C), pages 1-4.
    16. Pan, Jiun-Nan & Huang, Jr-Tsung & Chiang, Tsun-Feng, 2015. "Empirical study of the local government deficit, land finance and real estate markets in China," China Economic Review, Elsevier, vol. 32(C), pages 57-67.
    17. Wang, Jing & Lin, Yifan & Glendinning, Anthony & Xu, Yueqing, 2018. "Land-use changes and land policies evolution in China’s urbanization processes," Land Use Policy, Elsevier, vol. 75(C), pages 375-387.
    18. Henderson, Vernon, 2003. "The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
    19. Abbasi, Kashif Raza & Shahbaz, Muhammad & Jiao, Zhilun & Tufail, Muhammad, 2021. "How energy consumption, industrial growth, urbanization, and CO2 emissions affect economic growth in Pakistan? A novel dynamic ARDL simulations approach," Energy, Elsevier, vol. 221(C).
    20. Fang Wang & Ming-Hua Tian & Zhong-Hua Yin, 2021. "Modern urbanization and industrial upgrading in China: evidence from panel data," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(2), pages 661-681, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liping Wang & Zhongyi Qu & Wei Yang & Enliang Ren & Tao Tang, 2023. "Coupled Urbanisation and Ecological Protection along the Yellow River Basin in the Context of Dual Carbon," Sustainability, MDPI, vol. 15(7), pages 1-15, March.
    2. Boxi Deng & Fanglei Zhong, 2023. "Leading or Constraining? Development of New-Type Urbanization under Economic Growth Targets," Land, MDPI, vol. 12(4), pages 1-24, April.
    3. Run Yuan & Mengjie Ren & Zhigang Li, 2024. "Spatial Network Structure and Shift Path Prediction of Ecological Welfare Performance in Chinese Cities—Evidence from 284 Cities," Sustainability, MDPI, vol. 16(13), pages 1-33, June.
    4. Yunjie Wu & Peng Qian & Lei Yang & Zhuang Tian & Jieqiong Luo, 2024. "Analysis of the Impact of Urban Infrastructure on Urbanization Processes at Different Levels from a Spatiotemporal Perspective," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    5. Xiaofu Lin & Hui Fu, 2022. "Spatial-Temporal Evolution and Driving Forces of Cultivated Land Based on the PLUS Model: A Case Study of Haikou City, 1980–2020," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    6. Shiwei Liu & Luyao Jia & Feng Zhang & Rutong Wang & Xian Liu & Lu Zou & Xuguang Tang, 2024. "Do New Urbanization Policies Promote Sustainable Urbanization? Evidence from China’s Urban Agglomerations," Land, MDPI, vol. 13(4), pages 1-21, March.
    7. David W. H. Wong & Harry F. Lee & Simon X. B. Zhao & Andy C. L. Tai, 2022. "Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization," Land, MDPI, vol. 11(12), pages 1-16, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Awan, Ashar & Abbasi, Kashif Raza & Rej, Soumen & Bandyopadhyay, Arunava & Lv, Kangjuan, 2022. "The impact of renewable energy, internet use and foreign direct investment on carbon dioxide emissions: A method of moments quantile analysis," Renewable Energy, Elsevier, vol. 189(C), pages 454-466.
    2. Łukasz Jarosław Kozar & Robert Matusiak & Marta Paduszyńska & Adam Sulich, 2022. "Green Jobs in the EU Renewable Energy Sector: Quantile Regression Approach," Energies, MDPI, vol. 15(18), pages 1-21, September.
    3. Alessia Matano & Paolo Naticchioni, 2017. "The Extent of Rent Sharing along the Wage Distribution," British Journal of Industrial Relations, London School of Economics, vol. 55(4), pages 751-777, December.
    4. Xu, Tingting & Gao, Jay & Li, Yuhua, 2019. "Machine learning-assisted evaluation of land use policies and plans in a rapidly urbanizing district in Chongqing, China," Land Use Policy, Elsevier, vol. 87(C).
    5. Frantisek Cech & Jozef Barunik, 2017. "Measurement of Common Risk Factors: A Panel Quantile Regression Model for Returns," Working Papers IES 2017/20, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Sep 2017.
    6. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2016. "Innovation and firm growth: Does firm age play a role?," Research Policy, Elsevier, vol. 45(2), pages 387-400.
    7. Claudiu Tiberiu Albulescu & Eugenia Grecu, 2023. "Government Interventions and Sovereign Bond Market Volatility during COVID-19: A Quantile Analysis," Mathematics, MDPI, vol. 11(5), pages 1-14, February.
    8. Carles Méndez-Ortega & Mercedes Teruel, 2020. "To acquire or not to acquire: the effects of acquisitions in the software industry," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 793-814, July.
    9. Poelhekke, Steven, 2011. "Urban growth and uninsured rural risk: Booming towns in bust times," Journal of Development Economics, Elsevier, vol. 96(2), pages 461-475, November.
    10. Abid, Nabila & Ahmad, Fayyaz & Aftab, Junaid & Razzaq, Asif, 2023. "A blessing or a burden? Assessing the impact of Climate Change Mitigation efforts in Europe using Quantile Regression Models," Energy Policy, Elsevier, vol. 178(C).
    11. Panagiotidis, Theodore & Printzis, Panagiotis, 2021. "Investment and uncertainty: Are large firms different from small ones?," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 302-317.
    12. Maricruz Lacalle-Calderon & Manuel Perez-Trujillo & Isabel Neira, 2017. "Fertility and Economic Development: Quantile Regression Evidence on the Inverse J-shaped Pattern," European Journal of Population, Springer;European Association for Population Studies, vol. 33(1), pages 1-31, February.
    13. Chao-Qun Ma & Jiang-Long Liu & Yi-Shuai Ren & Yong Jiang, 2019. "The Impact of Economic Growth, FDI and Energy Intensity on China’s Manufacturing Industry’s CO 2 Emissions: An Empirical Study Based on the Fixed-Effect Panel Quantile Regression Model," Energies, MDPI, vol. 12(24), pages 1-16, December.
    14. Sanghamitra Bandyopadhyay & Elliott Green, 2018. "Urbanization and mortality decline," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 483-503, March.
    15. Dogan, Eyup & Altinoz, Buket & Tzeremes, Panayiotis, 2020. "The analysis of ‘Financial Resource Curse’ hypothesis for developed countries: Evidence from asymmetric effects with quantile regression," Resources Policy, Elsevier, vol. 68(C).
    16. Nadine Levratto & Aziza Garsaa & Luc Tessier, 2013. "La Corse est-elle soluble dans le modèle méditerranéen ? Une analyse à partir d’une régression quantile sur données d’entreprises en panel entre 2004 et 2010. Is the Corsican economy a part of the Med," EconomiX Working Papers 2013-20, University of Paris Nanterre, EconomiX.
    17. Boikos, Spyridon & Panagiotidis, Theodore & Voucharas, Georgios, 2022. "Financial development, reforms and growth," Economic Modelling, Elsevier, vol. 108(C).
    18. Christian Düben & Melanie Krause, 2021. "Population, light, and the size distribution of cities," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 189-211, January.
    19. Méndez Ortega, Carles, & Teruel, Mercedes, 2018. "To acquire or not to acquire: Mergers and Acquisitions in the Software Industry," Working Papers 2072/307043, Universitat Rovira i Virgili, Department of Economics.
    20. Claudiu Tiberiu Albulescu & Matei Tămășilă & Ilie Mihai Tăucean, 2021. "The Nonlinear Relationship Between Firm Size and Growth in the Automotive Industry," Journal of Industry, Competition and Trade, Springer, vol. 21(3), pages 445-463, September.

    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:spr:endesu:v:24:y:2022:i:5:d:10.1007_s10668-021-01714-4. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.