{"title":"Has the county-to-district reform enhanced entrepreneurial activity? Evidence from emerging cities in China","authors":"Meiling Kang , Pengkun Deng , Zhongkuang Zhao","doi":"10.1016/j.chieco.2025.102504","DOIUrl":null,"url":null,"abstract":"<div><div>Using staggered-implemented Incorporating-Counties-into-Prefectures Policy as an exogeneous shock, this paper explores how urbanization promotes entrepreneurial activities. A battery of specifications verifies a positive effect of ICIP policy on firm entry. Mechanism analysis implies expanded market demand, increased supply of higher-quality production factors, and improved institutional environment help explain the phenomenon. Unlike market-driven urbanization in Western countries, this paper emphasizes the role of government-led urban expansion policies in developing nations, highlighting their potential to accelerate urbanization, industrial upgrading, and entrepreneurships in underdeveloped regions.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102504"},"PeriodicalIF":5.5000,"publicationDate":"2025-07-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"中国经济评论","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1043951X25001622","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Using staggered-implemented Incorporating-Counties-into-Prefectures Policy as an exogeneous shock, this paper explores how urbanization promotes entrepreneurial activities. A battery of specifications verifies a positive effect of ICIP policy on firm entry. Mechanism analysis implies expanded market demand, increased supply of higher-quality production factors, and improved institutional environment help explain the phenomenon. Unlike market-driven urbanization in Western countries, this paper emphasizes the role of government-led urban expansion policies in developing nations, highlighting their potential to accelerate urbanization, industrial upgrading, and entrepreneurships in underdeveloped regions.
期刊介绍:
The China Economic Review publishes original works of scholarship which add to the knowledge of the economy of China and to economies as a discipline. We seek, in particular, papers dealing with policy, performance and institutional change. Empirical papers normally use a formal model, a data set, and standard statistical techniques. Submissions are subjected to double-blind peer review.