The Puzzles of Chinese City Size: A Comprehensive Analytical Framework
- DENG Zhongqi, SONG Shunfeng & CAO Qingfeng
- DENG Zhongqi(Sichuan University, 610065)SONG Shunfeng (University of Nevada, Reno, 89557; Nanjing Audit University, 211815)CAO Qingfeng (Tianjin University of Finance and Economics, 300222)
How to alleviate the “metropolitan malaise”, maximize the scale economies of urban agglomeration, and reduce the scale diseconomies of urban agglomeration, is an important issue in academia.To solve this issue, there is an urgent need for a comprehensive analytical framework, which takes into account the economic growth, environmental pollution, and traffic congestion effects of urban agglomeration. This paper performs a study about this aspect, as well as answers three common puzzles of Chinese urbanization. Overall, most Chinese cities are undersized, so it is necessary to further promote the urbanization process, but it doesn’t mean that all the first-tier cities should be encouraged to agglomerate because Beijing and Shanghai have been oversized. Urban development imbalance exists in China, a possible reason is that local governments, in the past urbanization process, were keen to pursue the aggregate economy but ignored the per capita utility. To maximize per capita utility in the whole society, the small and medium-sized cities should be given priority to develop. As for urban policies, the small and medium-sized cities should use industrial policies to improve their population-carrying capacity, while the large cities should pay more attention to the improvement of environmental quality and traffic condition, and household registration policies should be used carefully.
JEL：J11, R12, Q58
- City Size, Urbanization Process, Urban Policies, Environmental Quality