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

Abstract

AbstractThis 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.