Research on the Mechanism of Transfer Payment Policy on Resource Dependence of Resource-Depleted Cities

Abstract

The objective of this study is to clarify the impact and mechanism of transfer payment policies on the resource dependence of resource-depleted cities. Based on the panel data of 113 prefecture-level resource-based cities from 2006 to 2017, this study uses a multi-period difference-in-differences model to conduct an empirical study on the impact and mechanism of transfer payment policies on resource-depleted cities. The results are as follows: Firstly, the transfer payment policy can reduce the resource dependence of resource-depleted cities. Secondly, there is a significant difference between the eastern region and the central and western regions in terms of the effects of policy implementation. Thirdly, transfer payment policies reduce local dependence on resources, mainly through upgrading industrial structures and enhancing infrastructure construction and technological progress. The research indicates that providing financial policy support for the transformation of resource-depleted cities, exploring ways to reduce resource dependence in the eastern region, playing an exemplary role, and expanding the intensity of urban industrial transformation are of reference significance for the sustainable development of resource-depleted cities. This study also contributes to the coordinated development of the regional economy and the policy formulation of the sustainable development of resource-depleted cities.