Publication:
Empowering Cities : Good for Growth? Evidence from China

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dc.contributor.authorZhu, T. Juni
dc.contributor.authorMukim, Megha
dc.date.accessioned2015-02-13T19:07:41Z
dc.date.available2015-02-13T19:07:41Z
dc.date.issued2015-02
dc.description.abstractThis paper utilizes a countrywide, county-to-city upgrade in the 1990s to identify whether extending the powers of urban local governments leads to better firm outcomes. The paper hypothesizes that since local leaders in newly-promoted cities have an incentive to utilize their new administrative remit to maximize gross domestic product and employment growth, there should be improvements in economic outcomes. The analysis finds that aggregate firm-level outcomes do not necessarily improve after county-to-city graduation. However, it does find that state-owned enterprises perform better post-graduation, with increased access to credit through state-owned banks as a possible explanation for the improvement in performance. The most important finding is that newly-promoted cities with high capacity generally produce better aggregate firm outcomes compared with newly-promoted cities with low capacity. The conclusions are twofold. First, in terms of access to credit, the paper provides evidence that relaxing credit constraints for firms could lead to large increases in firm operation and employment. Second, increasing local government's administrative remit is not enough to lead to better firm and economic outcomes; local capacity is of paramount importance.en
dc.identifierhttp://documents.worldbank.org/curated/en/2015/02/23984231/empowering-cities-good-growth-evidence-china
dc.identifier.doi10.1596/1813-9450-7193
dc.identifier.urihttps://hdl.handle.net/10986/21448
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank Group, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 7193
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO CREDIT
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE DECENTRALIZATION
dc.subjectAGRICULTURAL ACTIVITIES
dc.subjectAGRICULTURAL TAX
dc.subjectBANK COMPETITION
dc.subjectBANK LOANS
dc.subjectBANKS
dc.subjectBUDGET CONSTRAINTS
dc.subjectBUSINESS ENVIRONMENT
dc.subjectCENTRAL GOVERNMENT
dc.subjectCITIES
dc.subjectCITY GOVERNMENTS
dc.subjectCITY LEADERS
dc.subjectCITY OUTCOMES
dc.subjectCITY POPULATION
dc.subjectCITY POWER
dc.subjectCITY UPGRADING
dc.subjectCOMMERCIAL BANKS
dc.subjectCREDIT ALLOCATION
dc.subjectCREDIT CONSTRAINTS
dc.subjectDEBT
dc.subjectDEBT FINANCING
dc.subjectDECENTRALIZATION
dc.subjectDISTRIBUTION OF ELECTRICITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectEDUCATION LEVEL
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT GROWTH
dc.subjectEXPENDITURE
dc.subjectFINANCING OBSTACLES
dc.subjectGENDER
dc.subjectGOVERNMENT EMPLOYEES
dc.subjectGOVERNMENT POLICY
dc.subjectHUMAN CAPITAL
dc.subjectHUMAN RESOURCE MANAGEMENT
dc.subjectINCOME
dc.subjectINDUSTRIAL ENTERPRISES
dc.subjectINDUSTRIAL OUTPUT
dc.subjectINDUSTRIALIZATION
dc.subjectINTERNATIONAL BANK
dc.subjectJOB CREATION
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENT OFFICIALS
dc.subjectLOCAL GOVERNMENT SIZE
dc.subjectLOCAL GOVERNMENTS
dc.subjectMAYOR
dc.subjectMINISTRY OF FINANCE
dc.subjectMUNICIPALITY
dc.subjectNEW ENTRANTS
dc.subjectOPERATING COST
dc.subjectOPERATING COSTS
dc.subjectOPERATING REVENUE
dc.subjectPOLICE
dc.subjectPOLICY DOCUMENT
dc.subjectPOLICY MAKERS
dc.subjectPREFECTURES
dc.subjectPRODUCTIVITY
dc.subjectPROVINCE
dc.subjectPROVINCIAL ADMINISTRATION
dc.subjectPUBLIC
dc.subjectPUBLIC EMPLOYEES
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FUNDING
dc.subjectPUBLIC HOSPITAL
dc.subjectPUBLIC SERVICE
dc.subjectPUBLIC SERVICE PROVISION
dc.subjectPUBLIC SERVICES
dc.subjectSALES REVENUES
dc.subjectSTATE BANKS
dc.subjectSTRUCTURAL REFORMS
dc.subjectSUBNATIONAL
dc.subjectSUBNATIONAL GOVERNMENTS
dc.subjectSUBNATIONAL REGIONS
dc.subjectSURCHARGES
dc.subjectTAX
dc.subjectTAX COLLECTION
dc.subjectTAX REVENUES
dc.subjectURBAN CONSTRUCTION
dc.subjectURBAN GOVERNANCE
dc.subjectURBAN MANAGEMENT
dc.subjectURBANIZATION
dc.subjectWAGES
dc.titleEmpowering Cities : Good for Growth? Evidence from Chinaen
dspace.entity.typePublication
okr.crossref.titleEmpowering Cities: Good for Growth? Evidence from China
okr.date.disclosure2015-02-03
okr.date.doiregistration2025-04-10T10:30:19.679778Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/2015/02/23984231/empowering-cities-good-growth-evidence-china
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.guid828031468018546681
okr.identifier.doi10.1596/1813-9450-7193
okr.identifier.externaldocumentum000158349_20150211083343
okr.identifier.internaldocumentum23984231
okr.identifier.reportWPS7193
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/02/11/000158349_20150211083343/Rendered/PDF/WPS7193.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryChina
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicMacroeconomics and Economic Growth::Subnational Economic Development
okr.topicPublic Sector Management and Reform
okr.topicUrban Development::City Development Strategies
okr.topicBanks and Banking Reform
okr.topicPublic Sector Development
okr.topicGovernance::Local Government
okr.topicUrban Development::Municipal Financial Management
okr.topicPublic Sector Governance::Decentralization
okr.topicFinancial and private sector development::State enterprise/bank restructuring and privatization
okr.topicUrban development::Municipal financial management
okr.topicUrban development::Municipal governance and institution building
okr.unitTrade and Competitiveness Global Practice Group and the Social, Urban, Rural and Resilience Global Practice Group
relation.isAuthorOfPublicationca409bd9-5608-5aea-9680-677c668c74ae
relation.isAuthorOfPublication.latestForDiscoveryca409bd9-5608-5aea-9680-677c668c74ae
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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