Do Economic Reforms Accelerate Urban Growth? The Case of China

Abstract

This paper examines the determinants of city growth in China. Evidence is provided that economic reforms played an important role in accelerating urban growth. The relative magnitude of the state sector has a negative impact on city growth and the city's openness to foreign direct investment has a positive impact on city growth. The results also lend support to the impact of other factors on urban growth, such as geography, industrial structure and human capital accumulation.