How economic globalization affects urban expansion: an empirical analysis of 30 Chinese provinces for 2000–2010

Abstract

Using the globalization theory as the base, this study draws on cross-provincial panel data from 2000 to 2010 to analyze the effect of globalization on China’s urban sprawl. It considers the spatial correlation and heterogeneity and tests whether these effects vary between locations and change over time. The results of the panel data regression indicate that differences in foreign direct investment (FDI), international trade, and service exports are contributors to urban built-up area expansions. Temporal and spatial differences are observed using a geographically weighted regression technique. Service exports played a sustained and significant role in urban expansion in eastern, northeastern, and central China, and these impacts were getting stronger. The impact of international trade is also obvious especially in eastern, central, and northeastern China, but its influence weakened during the period under study. The FDI factor exerted an effect in central China and a few Eastern provinces only. Due to the geographical environment, globalization factors had almost no impact on the western provinces. The national strategy’s implications to these findings are discussed.