Sustainable urbanization and green total factor productivity: evidence from China’s new-type urbanization plan
Abstract
Sustainable urbanization is significant in developing countries. This paper studies whether Chinese-type sustainable urbanization, that is new-type urbanization, promotes green total factor productivity (GTFP). We find that the new-type urbanization implementation in China, on average, significantly promotes GTFP by 3.2%. The positive effect of new-type urbanization on GTFP is correlated with promoting innovation, especially green innovation, and improving allocation efficiency. We do not find clear evidence for industrial upgrading, including industrial advancement and rationalization. This is because industrial upgrading is a gradual process and cannot be achieved shortly. Instead, we find that pilot cities might screen the entry of new firms and keep polluting firms out comparatively. The heterogeneous results indicate that the promotion effects on GTFP are more salient in regions with strong environmental regulation and adequate factor endowments. We have some practical implications for sustainable development in developing countries.
First published online 17 September 2024
Keyword : sustainable urbanization, green total factor productivity, innovation promoting, industrial upgrading
How to Cite
Yang, Z., Ji, H., Chen, S., Duan, J., & Liu, L. (2024). Sustainable urbanization and green total factor productivity: evidence from China’s new-type urbanization plan. Technological and Economic Development of Economy, 30(6), 1598–1617. https://doi.org/10.3846/tede.2024.21869
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Xu, G., & Yang, Z. (2022). The mechanism and effects of national smart city pilots in China on environmental pollution: Empirical evidence based on a DID model. Environmental Science and Pollution Research, 29, 41804–41819. https://doi.org/10.1007/s11356-021-18003-2
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Arrow, K. J. (1962). The economic implications of learning by doing. Review of Economic Studies, 29(3), 155–173. https://doi.org/10.2307/2295952
Bertinelli, L., & Black, D. (2004). Urbanization and growth. Journal of Urban Economics, 56(1), 80–96. https://doi.org/10.1016/j.jue.2004.03.003
Chen, S. Y., & Golley, J. (2014). ‘Green’ productivity growth in China’s industrial economy. Energy Economics, 44, 89–98. https://doi.org/10.1016/j.eneco.2014.04.002
Chen, Y., & Tang, X. (2018). Spillover effects of manufacturing agglomeration on urban green total factor productivity: Based on the perspective of urban grade. Finance and Trade Research, 29(1), 1–15. https://doi.org/10.19337/j.cnki.34-1093/f.2018.01.001
Chen, Z., Kahn, M. E., Liu, Y., & Wang, Z. (2018). The consequences of spatially differentiated water pollution regulation in China. Journal of Environmental Economics and Management, 88, 468–485. https://doi.org/10.1016/j.jeem.2018.01.010
Cong, X., Wang, S., Wang, L., Qi, Z., & Skibniewski, M. J. (2023). New smart city clusters’ construction level evaluation under economic circles: The case of Shandong, China. Technological and Economic Development of Economy, 29(3), 949–980. https://doi.org/10.3846/tede.2023.18792
Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). The regulation of entry. Quarterly Journal of Economics, 117(1), 1–37. https://doi.org/10.1162/003355302753399436
Gao, D., Li, G., & Yu, J. (2022). Does digitization improve green total factor energy efficiency? Evidence from Chinese 213 cities. Energy, 247, Article 123395. https://doi.org/10.1016/j.energy.2022.123395
Gao, D., Li, Y., & Tan, L. (2024). Can environmental regulation break the political resource curse: Evidence from heavy polluting private listed companies in China. Journal of Environmental Planning and Management. 67(13), 3190–3216. https://doi.org/10.1080/09640568.2023.2218988
Gollin, D., Jedwab, R., & Vollrath, D. (2016). Urbanization with and without industrialization. Journal of Economic Growth, 21(1), 35–70. https://doi.org/10.1007/s10887-015-9121-4
Grant, K., Matousek, R., Meyer, M., & Tzeremes, N. G. (2019). Research and development spending and technical efficiency: evidence from biotechnology and pharmaceutical sector. International Journal of Production Research, 58(20), 6170–6184. https://doi.org/10.1080/00207543.2019.1671623
Guan, X., Wei, H., Lu, S., Dai, Q., & Su, H. (2018). Assessment on the urbanization strategy in China: Achievements, challenges and reflections. Habitat International, 71, 97–109. https://doi.org/10.1016/j.habitatint.2017.11.009
Henderson, V. (2002). Urbanization in developing countries. The World Bank Research Observer, 17(1), 89–112. https://doi.org/10.1093/wbro/17.1.89
Kong, D., & Qin, N. (2021). Does environmental regulation shape entrepreneurship?. Environmental and Resource Economics, 80(1), 169–196. https://doi.org/10.1007/s10640-021-00584-8
Li, H., & Song, W. (2020). Evolution of rural settlements in the Tongzhou District of Beijing under the new-type urbanization policies. Habitat International, 101, Article 102198. https://doi.org/10.1016/j.habitatint.2020.102198
Li, K., Qu, J., Wei, P., Ai, H., & Jia, P. (2020). Modelling technological bias and productivity growth: A case study of China’s three urban agglomerations. Technological and Economic Development of Economy, 26(1), 135–164. https://doi.org/10.3846/tede.2020.11329
Li, L., Chi, T., & Wang, S. (2016). Is energy utilization among Chinese provinces sustainable? Technological Forecasting and Social Change, 112, 198–206. https://doi.org/10.1016/j.techfore.2016.07.003
Liang, L., Wang, Z., & Li, J. (2019). The effect of urbanization on environmental pollution in rapidly developing urban agglomerations. Journal of Cleaner Production, 237, Article 117649. https://doi.org/10.1016/j.jclepro.2019.117649
Lin, B., & Zhu, J. (2021). Impact of China’s new-type urbanization on energy intensity: A city-level analysis. Energy Economics, 99, Article 105292. https://doi.org/10.1016/j.eneco.2021.105292
Liu, H., Cui, W., & Zhang, M. (2022). Exploring the causal relationship between urbanization and air pollution: Evidence from China. Sustainable Cities and Society, 80, Article 103783. https://doi.org/10.1016/j.scs.2022.103783
Liu, D., Zhu, X., & Wang, Y. (2021). China’s agricultural green total factor productivity based on carbon emission: An analysis of evolution trend and influencing factors. Journal of Cleaner Production, 278, Article 123692. https://doi.org/10.1016/j.jclepro.2020.123692
NBS. (2020). https://data.stats.gov.cn/easyquery.htm?cn=C01.
Oh, D.-h. (2010). A global Malmquist-Luenberger productivity index. Journal of Productivity Analysis, 34, 183–197. https://doi.org/10.1007/s11123-010-0178-y
Porter, M. E., & Linde, C. v. d. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1257/jep.9.4.97
Qi, Y., Peng, W., & Xiong, N. N. (2020). The effects of fiscal and tax incentives on regional innovation capability: Text extraction based on python. Mathematics, 8(7), Article 1193. https://doi.org/10.3390/math8071193
Romer, P. M. (1989). Human capital and growth: Theory and evidence (Working paper 31732). National Bureau of Economic Research. https://doi.org/10.3386/w3173
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71–S102. https://doi.org/10.1086/261725
Serfling, M. (2016). Firing costs and capital structure decisions. The Journal of Finance, 71(5), 2239–2286. https://doi.org/10.1111/jofi.12403
Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65–94. https://doi.org/10.2307/1884513
Tan, Y., Xu, H., & Zhang, X. (2016). Sustainable urbanization in China: A comprehensive literature review. Cities, 55, 82–93. https://doi.org/10.1016/j.cities.2016.04.002
Wang, G., Cheng, K., & Salman, M. (2024). High-speed Railway and Green Total Factor Productivity: Taking Industrial Structure as a Mediator. Journal of the Knowledge Economy, 15, 6908–6936. https://doi.org/10.1007/s13132-023-01317-6
Wang, Z., Sun, Y., & Wang, B. (2019). How does the new-type urbanisation affect CO2 emissions in China? An empirical analysis from the perspective of technological progress. Energy Economics, 80, 917–927. https://doi.org/10.1016/j.eneco.2019.02.017
Wu, H., Ren, S., Yan, G., & Hao, Y. (2020). Does China’s outward direct investment improve green total factor productivity in the “Belt and Road” countries? Evidence from dynamic threshold panel model analysis. Journal of Environmental Management, 275, Article 111295. https://doi.org/10.1016/j.jenvman.2020.111295
Xia, F., & Xu, J. (2020). Green total factor productivity: A re-examination of quality of growth for provinces in China. China Economic Review, 62, Article 101454. https://doi.org/10.1016/j.chieco.2020.101454
Xu, G., & Yang, Z. (2022). The mechanism and effects of national smart city pilots in China on environmental pollution: Empirical evidence based on a DID model. Environmental Science and Pollution Research, 29, 41804–41819. https://doi.org/10.1007/s11356-021-18003-2
Ye, Q., Zeng, G., Dai, S., & Wang, F. (2018). Research on the effects of different policy tools on China’s emissions reduction innovation: Based on the panel data of 285 prefectural-level municipalities. China Population, Resources and Environment, 28(2), 115–122.
Zhang, Y.-J., Peng, Y.-L., Ma, C.-Q., & Shen, B. (2017). Can environmental innovation facilitate carbon emissions reduction? Evidence from China. Energy Policy, 100, 18–28. https://doi.org/10.1016/j.enpol.2016.10.005
Zhao, J., Xiao, Y., Sun, S., Sang, W., & Axmacher, J. C. (2022). Does China’s increasing coupling of ‘urban population’ and ‘urban area’ growth indicators reflect a growing social and economic sustainability? Journal of Environmental Management, 301, Article 113932. https://doi.org/10.1016/j.jenvman.2021.113932
Zhou, X., Pan, Z., Shahbaz, M., & Song, M. (2020). Directed technological progress driven by diversified industrial structural change. Structural Change and Economic Dynamics, 54, 112–129. https://doi.org/10.1016/j.strueco.2020.04.013