Do Administrative Boundaries Matter for Uneven Economic Development? A Case Study of China's Provincial Border Counties

Abstract

This paper uses China's provincial border counties as samples to explore the role played by administrative boundaries in uneven regional economic development. The results indicate that the gap between provincial border counties and other regions is increasing and that economic diffusion to provincial border counties from developed regions is extremely weak. Moreover, provincial border counties have become economically backward. A regression analysis model that includes certain novel factors that are likely to influence economic growth confirms the significant effects of government intervention and administrative boundaries on economic growth in provincial border counties. This paper concludes that administrative boundaries' effects should be nullified by limiting preferential development policies and implementing policies that instead help provincial border counties engage in sustainable development.

The value of entrepreneurship and the entrepreneurial ecosystem: Evidence from 265 cities in China

“…We point out the short-term and long-term paths of urban economic growth, and explain why some cities in China have achieved rapid economic development in recent years, while others have achieved only good innovation results. Specifically, consistent with previous research (e.g., Holz, 2008;Zhang et al, 2017), we propose that the Chinese government might have played an important role in economic growth, innovation, and employment. We point out how the provincial entrepreneurial ecosystem can significantly promote innovation, and that innovation should be used as a driving force for long-term economic development (Duan et al, 2019;Li, Chen, et al, 2020).…”

Trade Barriers Between Chinese Regions and Russia

“…A possible explanation is that Chinese border regions are usually characterized by a high share of the public sector and weak involvement in global industrial ties. Some studies (Zhang et al, 2017) also indicate that the presence of a state border with a particular Chinese region does not contribute to the economic growth of bordering countries due to the lack of a coordinated development policy.…”

Conclusion: Toward an Asymmetrical Decentralization Design

“…Some recent studies even report the impact of administrative boundaries on economic growth of provincial counties and urban districts (see Zhang et al 2017;Jovanović 2009). This means that administrative boundaries do not necessarily reflect the equal distribution of endogenous capacities but they may even enforce the creation of further inequalities within and across the jurisdictional borders.…”