Testing Non-linear Effect of Urbanization on Economic Growth in China — Based on the Aspect of Financial Deepening

Li, Xinguang; Hu, Ridong

doi:10.1556/032.65.2015.s2.3

Cited by 3 publications

(3 citation statements)

References 16 publications

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“…The past studies confirmed the complexity of association between two variables, hence in order to gain a comprehensive understanding of the urbanization and growth relation, it is imperative to identify the threshold level of urbanization and to analyze how the influence of urbanization on growth changes beyond this threshold. Similarly, Li & Hu (2015) employed regression analysis to examine the link between urbanization and growth during the period from 1978 to 2012 in China. Their findings confirmed a non-linear association between these two variables.…”

Section: Evidence Of Non-linear Relationshipmentioning

confidence: 99%

Identifying Threshold Level of Urbanization for Economic Growth in Developing and Developed Asian Economies

Wajid,

Salita

2023

JES

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This study scrutinized the relationship between urbanization and economic growth in 11 developed and 23 underdeveloped Asian countries from 1998 to 2021. The study formulated dynamic and static models and employed the Fixed Effect Model and Dynamic GMM for estimation. The results of both static and dynamic models illustrated that urbanization augments growth in developed and developing countries, however, the nature of this relationship is non-linear. The study calculated the threshold level of urbanization and established that after this threshold level, the impact of urbanization on growth reverses. In the static model, developed and developing countries have thresholds of 68.08% and 53.8%, respectively. In the dynamic model, developed and developing countries maintained thresholds of 77.6% and 61.5%, respectively. The study concluded that urbanization and growth share a non-linear association in both developed and developing countries, and this relationship is not contingent upon the type of model or technique being used.

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Section: Evidence Of Non-linear Relationshipmentioning

confidence: 99%

Identifying Threshold Level of Urbanization for Economic Growth in Developing and Developed Asian Economies

Wajid,

Salita

2023

JES

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“…The literature’s third category focuses on the relationship between financial development and urbanization. Finance can provide capital for urbanization construction and improve the effectiveness of capital allocation for optimal allocation of relevant capital, achieving the goal of financial support for urbanization construction [ 34 ]. Financial marketization can also impact urbanization through knowledge spillover and industrial upgrading [ 35 ].…”

Section: Introductionmentioning

confidence: 99%

Does county financial marketization promote high-quality development of agricultural economy?: Analysis of the mechanism of county urbanization

Liu,

Cui,

Feng

et al. 2024

PLoS ONE

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China’s agricultural economy has been hindered by insufficient accumulation of agricultural capital and credit constraints. It is worth investigating whether China’s county financial marketization reform policy can alleviate these constraints and promote high-quality development of the agricultural economy (HQDAE). This paper presents an empirical analysis of the impact of county financial marketization reform on the HQDAE, based on county panel data. The focus is on the mechanism of county urbanization in the above relationship. The results show that county financial marketization has a significant non-linear impact on the HQDAE. Specifically, it has a ’U-shaped’ impact on the overall growth of the agricultural economy and an inverted ’N-shaped’ impact on the quality improvement of the agricultural economy. Secondly, the relationship between county financial marketization and the HQDAE is influenced by a threshold effect based on the level of county urbanization. As the level of county urbanization increases, the promoting effect of county financial marketization on HQDAE also increases significantly. Additionally, county financial marketization helps to promote county urbanization and accelerate urban-rural integration, which in turn leads to HQDAE. The research in this paper suggests that county-level local governments should promote a differentiated county financial system. In the early stages of financial market-oriented reform, the government should enhance the capacity of financial services in rural areas through tax breaks, policy incentives, and other measures to prevent financial leakage from agriculture. In the later stages of financial marketization reform, the government should strengthen financial supervision to prevent financial resources from being diverted from industry to capital. Moreover, to achieve the HQDAE, it is necessary to promote county financial market-oriented reform and accelerate the construction of county urbanization. This will help break the dual economic structure of urban and rural areas and promote the flow of financial capital, technology, and human capital from county cities to rural areas.

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“…The current Chinese research mainly focuses on the following points: In terms of research content, quantitative research on the evolution trend and coupling relationship of population urbanization and land urbanization was conducted involving the connotation of population urbanization and land urbanization [4][5][6][7][8][9], the degree measurement of population-land coordinated development [10][11][12][13][14][15], the analysis of influencing factors [6,[16][17][18], and optimization strategies [19][20][21]. In terms of research scale, existing studies just cover a certain region, province, city, district and county, etc.…”

Section: Introductionmentioning

confidence: 99%

A regional comparative study on the mismatch between population urbanization and land urbanization in China

Wang

Zhang

2023

PLoS ONE

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By taking 31 provinces (municipalities/autonomous regions) in Mainland China as the object of research, and using the data on urban population and built-up area of each region from 2005 to 2019, this paper measures the dispersion coefficient of population urbanization and land urbanization in each region through models and visually expresses the level and type of imbalance between them to reveal the temporal and spatial characteristics of imbalance. The results of the research show that since China’s state-owned land was sold through bidding, auction, and listing, the overall urbanization of the population and land development have become unbalanced. There is obvious regional and category difference in imbalance between population urbanization and land urbanization. The degree of imbalance increases from the central, eastern, northeastern to western regions. The remaining 29 regions are generally lagging in population urbanization except for Beijing and Hebei province. This imbalance is mainly caused by China’s dual household registration system, dual land system and the asymmetrical tax distribution system between financial rights and administrative rights.

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Testing Non-linear Effect of Urbanization on Economic Growth in China — Based on the Aspect of Financial Deepening

Cited by 3 publications

References 16 publications

Identifying Threshold Level of Urbanization for Economic Growth in Developing and Developed Asian Economies

Identifying Threshold Level of Urbanization for Economic Growth in Developing and Developed Asian Economies

Does county financial marketization promote high-quality development of agricultural economy?: Analysis of the mechanism of county urbanization

A regional comparative study on the mismatch between population urbanization and land urbanization in China

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