Improving Or Disappearing:Firm-level Adjustments To Government Relocation In China

With the rapid development of urbanization,government resident relocation,as a way of regional planning adjustment,has been widely used in urban space planning practice.Nearly one third of the cities in the country have been relocated,and many cities are being relocated or are planning to relocate.However,the central government has been cautious about the relocation of prefecture-level city governments and has introduced a strict examination and approval system.However,in order to seek new growth drivers for regional economic development and promote the development of new urban areas,many local governments often move in advance without approval.Admittedly,the relocation of local governments aims to promote the development of regional economy,but the impact of government resident relocation on the development of regional manufacturing industry is not only a theoretical dispute,but also a lack of empirical support.This thesis uses the data of Chinese industrial enterprises and government resident migration from 1998 to 2013 to study the impact of government resident migration on the development and extinction of manufacturing enterprises and its mechanism by using the model.The results show that the relocation of government resident will significantly inhibit the entry and exit of enterprise and reduce the exit of enterprises.Through mechanism analysis,it is found that the distance between government and enterprise is shortened after the government moves in,and the government’s control over enterprise operation is increased,which reduces enterprise efficiency.The difference test shows that the more developed areas can effectively guide the entry of high-efficiency enterprises after the government moves in,while in the less developed areas,this effect will be significantly weakened or even have a negative effect.In addition,this thesis finds that the construction of new areas after the government moves in will significantly attract the tertiary industry but exclude the entry of manufacturing enterprises.