How Do Population Changes and Land Use Policies Affect the Relationship between the Urban Economy and Public Services?

Abstract

In recent years, an increasing number of Chinese cities have experienced population decline, impacting the urban economy, public services, and paid use of state-owned land (PUL). This paper employs a coupled coordination degree model and the gray correlation coefficient method to examine the relationship between the rate of population change from 1990 to 2020, the rate of PUL change from 2000 to 2020, and the coupled coordination of economy and public services. The study arrives at several conclusions: (1) Cities with declining populations exhibit a lower PUL rate than those without population shrinkage, indicating reduced activity in the land market. (2) Population growth plays a significant role in the coordinated development of the urban economy and public services, fostering urbanization. (3) The economy and public services in shrinking cities rely heavily on revenue generated from the transfer of PUL rights to support their coordinated development. This research provides an insightful comparison between shrinking and non-shrinking cities by integrating the unique compensated land transfer system in China with the critical variable of population change.