Topic: Administrative Division Adjustment and China's Industrial Growth

Speaker: Xu Jia

Abstract: With the development of urbanization, as the number of cities remains unchanged, the administrative of division adjustment(ADA) has been a general choice for local governments. How the adjustment of administrative division affects enterprises' TFP is related to the development quality of urbanization in China. By collecting the administrative division adjustment cases from 1997 to 2007 and combining with the industrial enterprise database, this paper finds that the administrative division adjustment significantly improves the total factor productivity of enterprises. The two types of administrative division adjustment (county and district, district and district) have a significant difference in the impact on enterprises, among which the foreign-funded enterprises, as well as the eastern coastal cities are the most positive impacted. The influence ADA on enterprise productivity shows an inverted u-shape before and after the adjustment, and reaches its peak in the second year after the adjustment. Further influence mechanism of this paper finds that regionalization adjustment improves enterprise’ TFP mainly through the provision of public goods, which provides favorable and convenient conditions for the development of manufacturing industry and eventually leads to the rise of enterprise productivity. This paper has some enlightenment for the improvement of urbanization and entrepreneurs’ productivity.

Date: Wednesday, May 8, 2019

Time: 12:10-13:30

Location: Room 712, Academic Hall, City Campus, CUFE