Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization
A growing body of research has sought to determine how different factors have affected urbanization in developed countries over the past decades. Yet, few studies have systematically examined urbanization’s driving forces, particularly in emerging economies. In 2008–2009, the Chinese government anno...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-12-01
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| Series: | Land |
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| Online Access: | https://www.mdpi.com/2073-445X/11/12/2303 |
| _version_ | 1827638099587366912 |
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| author | David W. H. Wong Harry F. Lee Simon X. B. Zhao Andy C. L. Tai |
| author_facet | David W. H. Wong Harry F. Lee Simon X. B. Zhao Andy C. L. Tai |
| author_sort | David W. H. Wong |
| collection | DOAJ |
| description | A growing body of research has sought to determine how different factors have affected urbanization in developed countries over the past decades. Yet, few studies have systematically examined urbanization’s driving forces, particularly in emerging economies. In 2008–2009, the Chinese government announced an economic stimulus program to revitalize an economy struck by the 2007–2008 Global Financial Crisis. This study aims to identify how urbanization’s driving forces evolved under a drastic change in fiscal policy and revisit the conventional urbanization theories in the Chinese context. Using a dataset covering 31 Chinese provinces and spanning the periods 2005–2011 and 2013–2015, we employ panel data regressions to analyze whether such a fiscal arrangement affected urbanization in China. Throughout the entire period, the fiscal stimulus program caused a change in the drivers for urbanization at the national and regional levels. Before the implementation of the program, industrialization drove urbanization. After the program’s implementation, land financialization was crucial in promoting urbanization across the country. Our findings challenge the conventional urbanization theory—industrialization is always the primary driving force of urbanization in emerging economies. Land financialization, a kind of tertiary production, can also drive urbanization significantly. |
| first_indexed | 2024-03-09T16:11:51Z |
| format | Article |
| id | doaj.art-4d77ea4d928e4b4683b655eb02af1e09 |
| institution | Directory Open Access Journal |
| issn | 2073-445X |
| language | English |
| last_indexed | 2024-03-09T16:11:51Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Land |
| spelling | doaj.art-4d77ea4d928e4b4683b655eb02af1e092023-11-24T16:08:52ZengMDPI AGLand2073-445X2022-12-011112230310.3390/land11122303Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s UrbanizationDavid W. H. Wong0Harry F. Lee1Simon X. B. Zhao2Andy C. L. Tai3Department of Management, The Hang Seng University of Hong Kong, Hang Shin Link, Siu Lek Yuen, Shatin, New Territories, Hong Kong, ChinaDepartment of Geography and Resource Management, The Chinese University of Hong Kong, Shatin, Hong Kong, ChinaDivision of Humanities and Social Sciences, Beijing Normal University-Hong Kong Baptist University United International College, Zhuhai 519087, ChinaDivision of Business and Hospitality Management, College of Professional and Continuing Education, The Hong Kong Polytechnic University, Hung Hum, Kowloon, Hong Kong, ChinaA growing body of research has sought to determine how different factors have affected urbanization in developed countries over the past decades. Yet, few studies have systematically examined urbanization’s driving forces, particularly in emerging economies. In 2008–2009, the Chinese government announced an economic stimulus program to revitalize an economy struck by the 2007–2008 Global Financial Crisis. This study aims to identify how urbanization’s driving forces evolved under a drastic change in fiscal policy and revisit the conventional urbanization theories in the Chinese context. Using a dataset covering 31 Chinese provinces and spanning the periods 2005–2011 and 2013–2015, we employ panel data regressions to analyze whether such a fiscal arrangement affected urbanization in China. Throughout the entire period, the fiscal stimulus program caused a change in the drivers for urbanization at the national and regional levels. Before the implementation of the program, industrialization drove urbanization. After the program’s implementation, land financialization was crucial in promoting urbanization across the country. Our findings challenge the conventional urbanization theory—industrialization is always the primary driving force of urbanization in emerging economies. Land financialization, a kind of tertiary production, can also drive urbanization significantly.https://www.mdpi.com/2073-445X/11/12/2303urbanizationindustrializationland financializationfiscal stimulus packageglobal financial crisisChina |
| spellingShingle | David W. H. Wong Harry F. Lee Simon X. B. Zhao Andy C. L. Tai Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization Land urbanization industrialization land financialization fiscal stimulus package global financial crisis China |
| title | Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization |
| title_full | Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization |
| title_fullStr | Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization |
| title_full_unstemmed | Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization |
| title_short | Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization |
| title_sort | post 2008 fiscal stimulus packages and the driving forces for china s urbanization |
| topic | urbanization industrialization land financialization fiscal stimulus package global financial crisis China |
| url | https://www.mdpi.com/2073-445X/11/12/2303 |
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