The mechanism of revoking counties or county-level cities to municipal districts and its effect on urban expansion in Chinese cities

Abstract

Revoking counties or county-level cities to municipal districts (chexianshequ) is an important means for local governments to optimize spatial governance and promote regional integration. However, the impact of chexianshequ policy on urban expansion and the corresponding mechanism have not been well documented. In this study, we used the urban expansion rate (UER) to depict urban expansion characteristics and adopted a spatial difference-in-differences and mediation effect model to explore the impact and mechanism of chexianshequ policy on the UER. The results showed that the UER of cities implementing chexianshequ policy was 13.455 km2/year faster than that of those without the policy. Taking the implementation time of chexianshequ policy as the dividing point, the UER was 6.951 km2/year faster. In general, the chexianshequ policy accelerated the UER by 19.3% under the control of other factors affecting urban expansion. Moreover, we find that chexianshequ policy exerts a positive effect on the UER, mainly by increasing the proportion of non-agricultural industries, the rural transfer population, improving infrastructure construction, and expanding investment in fixed assets. However, it is particularly noteworthy that chexianshequ policy negatively impacts the UER by increasing the degree of government intervention and expanding the market scale. These findings provide a better understanding of urban expansion that will benefit urban planning and management in effectively controlling unplanned urban expansion.