Do political connections help or hinder urban economic growth? Evidence from 1,400 industrial parks in China

Kahn, Matthew E.; Sun, Weizeng; Wu, Jianfeng; Zheng, Siqi

doi:10.1016/j.jue.2020.103289

Cited by 31 publications

(13 citation statements)

References 25 publications

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“…We fit a logit regression to estimate propensity scores obtaining city‐pairs of treated and control cities to implement the DID estimation. Thus, we identify the effect of lockdowns using variation within the matched city‐pairs (Kahn et al, 2021). To test the quality of matching, we use a two‐sample t test to check whether the covariates are balanced after matching.…”

Section: Robustness Analysismentioning

confidence: 99%

International trade and Covid‐19: City‐level evidence from China's lockdown policy

Pei

Vries

Zhang

2021

Journal of Regional Science

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This paper examines the impact of Covid-19 lockdowns on exports by Chinese cities. We use city-level export data at a monthly frequency from January 2018 through April 2020.Differences-in-differences estimates suggest cities in lockdown experienced a ceteris paribus 34 percentage points reduction in the year-on-year growth rate of exports. The lockdown impacted the intensive and extensive margin, with higher exit and lower new entry into foreign markets. The drop in exports was smaller in (i) coastal cities;(ii) cities with better-developed ICT infrastructure; and (iii) cities with a larger share of potential teleworkers. Timesensitive and differentiated goods experienced a more pronounced decline in export growth. Global supply chain characteristics matter, with more upstream products and industries that had accumulated larger inventories experiencing a smaller decline in export growth. Also, products that relied more on imported (domestic) intermediates experienced a sharper (flatter) slowdown in export growth.The rapid recovery in cities' exports after lockdowns were lifted suggests the policy was cost-effective in terms of its effects on trade.

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Section: Robustness Analysismentioning

confidence: 99%

International trade and Covid‐19: City‐level evidence from China's lockdown policy

Pei

Vries

Zhang

2021

Journal of Regional Science

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“…Control variables: The control variables are selected to affect both the core explanatory variable and the outcome variable as much as possible. After reviewing the literature, the following are used as the control variables: Foreign investment (Kahn et al., 2021; Zheng et al., 2017), infrastructure (Wang, 2013; Zheng et al., 2017), industrial output (Zheng et al., 2017), population (Alder et al., 2016; Kahn et al., 2021), land price (Wang, 2013), nighttime light (Alder et al., 2016), railroads (Kahn et al., 2021), and airports (Zheng et al., 2017). In addition, the policy variables that may cause bias are controlled as much as possible.…”

Section: Methodsmentioning

confidence: 99%

Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China

Nie

Wang

et al. 2022

J of Industrial Ecology

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Low‐carbon development is associated with eco‐industrial parks (EIPs), but whether a causal relationship exists is unknown. A growing body of evidence from environmental engineering studies suggests that EIPs reduce carbon emissions, but few economic studies have assessed the causality, channels, and heterogeneity of this relationship. This study uses the staggered difference‐in‐difference method to construct a quasi‐natural experiment to assess the impact of national‐level EIPs on low‐carbon development. The empirical results reveal that EIPs help achieve low‐carbon development in China. Specifically, EIPs reduce the carbon intensity of the pilot cities by 7.2%. The channel analysis reveals that EIPs advance technological innovation, stimulate the Porter effect, and upgrade the industrial structure. Regional heterogeneity analysis further reveals that EIPs are more conducive to low‐carbon development in pilot cities in southern China, cities along the coast, and cities on the east of the Hu line. Further analysis shows that EIPs depress the peak of the environmental Kuznets curve and help achieve the turning point early. Moreover, this study offers fresh cases and patterns for the construction of EIPs in China. This study contributes to an in‐depth understanding of the role of EIPs in the low‐carbon transition in the largest developing country and provides inspiration for further policy optimization.

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“…This study aims to examine the impact of digital finance on economic development in China, key control variables should be considered to control the influence of other factors on the dependent variable. Existing literature has listed substantial factors that affected economic development [57][58][59]; therefore, the following control variables were used: The Cobb-Douglas Production function is widely used in research on economic growth, and capital input and labor input are the two basic production factors. So, the logarithm of the total fixed assets of the whole society is used as the proxy variable of capital input (lnCAP), and the logarithm of labor force at year end is used to measure labor input (lnLAB) in this paper.…”

Section: Control Variablesmentioning

confidence: 99%

The Nexus between Digital Finance and Economic Development: Evidence from China

et al. 2021

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In the context of the digital economy and based on the characteristics of digital financial development in China, this paper investigates the effect of digital finance on economic growth and explores its influencing mechanism. A panel econometric model, mediating effect model, and instrumental variable method were employed to evaluate yearly data from 30 provinces of China from 2011 to 2018. The results show that the development of digital finance has significantly driven economic growth, which is quantitatively robust after the selection of historical data as instrumental variables and other robustness tests. A heterogeneity analysis proved that provinces in the central and western regions, which have a lower urbanization rate and lower physical capital, more clearly embody the facilitating impacts of digital finance on economic growth compared to their counterparts in other regions. Further analysis found that the development of digital finance has spurred the liberation of regional entrepreneurship, which in turn promoted economic growth—that is, there is an entrepreneurial channel by which digital finance could boost economic growth.

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Do political connections help or hinder urban economic growth? Evidence from 1,400 industrial parks in China

Cited by 31 publications

References 25 publications

International trade and Covid‐19: City‐level evidence from China's lockdown policy

International trade and Covid‐19: City‐level evidence from China's lockdown policy

Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China

The Nexus between Digital Finance and Economic Development: Evidence from China

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