Sustainable urbanization and green total factor productivity: evidence from China’s new-type urbanization plan

Sustainable urbanization is significant in developing countries. This paper studies whether Chinese-type sustainable urbanization, that is new-type urbanization, promotes green total factor productivity (GTFP). We find that the new-type urbanization implementation in China, on average, significantly...

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Bibliographic Details
Published inTechnological and economic development of economy pp. 1 - 20
Main Authors Yang, Zhijiu, Ji, Hongkun, Chen, Shuyan, Duan, Jiani, Liu, Lu
Format Journal Article
LanguageEnglish
Published Vilnius Gediminas Technical University 17.09.2024
Subjects
green total factor productivity
industrial upgrading
innovation promoting
sustainable urbanization
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Summary:Sustainable urbanization is significant in developing countries. This paper studies whether Chinese-type sustainable urbanization, that is new-type urbanization, promotes green total factor productivity (GTFP). We find that the new-type urbanization implementation in China, on average, significantly promotes GTFP by 3.2%. The positive effect of new-type urbanization on GTFP is correlated with promoting innovation, especially green innovation, and improving allocation efficiency. We do not find clear evidence for industrial upgrading, including industrial advancement and rationalization. This is because industrial upgrading is a gradual process and cannot be achieved shortly. Instead, we find that pilot cities might screen the entry of new firms and keep polluting firms out comparatively. The heterogeneous results indicate that the promotion effects on GTFP are more salient in regions with strong environmental regulation and adequate factor endowments. We have some practical implications for sustainable development in developing countries.
ISSN:2029-4913
2029-4921
DOI:10.3846/tede.2024.21869