The driving influence of multidimensional urbanization on green total factor productivity in China: evidence from spatiotemporal analysis.

Abstract

China is experiencing a swift transformation from a rural to an urban society. This societal transition is the result of a country's ambition toward economic development. Rapid urbanization impacts on human wellbeing, environment, and infrastructure. Unlike many cases of urban extension, China's urbanization has led to increase in environmental issues, rather than to contain, and posed serious challenges to achieve sustainable development. To date, nevertheless, there is a little empirical enquiry on the spatiotemporal effects of multidimensional urbanization on green total factor productivity. Taking this into account, this article constructs a spatial panel data model based on 283 Chinese cities during 2006-2019. The results showed that the three types of urbanization (i.e., population, land, and economic) have positive effect on green total factor productivity (GTFP). Population urbanization has indirect positive effect on GTFP. Local land urbanization inhibits while surrounding land urbanization promotes GTFP. Economic urbanization has positive direct effect on GTFP. Considering regional heterogeneity, population and economic urbanization have positive effect on GTFP in eastern region. In central region, land urbanization significantly promotes GTFP, while economic urbanization has significant negative effect on GTFP. In the western region, the three types of urbanization are not conducive to GTFP. Considering sized heterogeneity, population and economic types of urbanization have significant negative effect on GTFP in small- and medium-sized cities. In large cities, the three types of urbanization have significant positive effects on GTFP. Considering temporal heterogeneity, the three types of urbanization significantly promote GTFP before 2014, but economic urbanization deteriorates GTFP after 2014. Our results recommend loosening Hukou system, improving land use efficiency, and developing technology and knowledge-intensive industries.