WANG Yao,NIAN Meng:“Preference” of Government and Urban Development: A Case Study in China

Abstract：In this paper, we use the administrative hierarchy as the alternative variables about preference of central government to the city by choosing China as an example of empirical test.The empirical results show that higher administrative hierarchy will bring faster urban population growth, and the urban population size threshold value will get reached sooner.Therefore, the government can give a city higher administrative hierarchy so as to promote the development of the city.Our research can help understand the positive role of China's urbanization mode which is “Government Leadership+ Market Promoting” since the reform and opening up, and also help understand the effect of historical factors and ecological environment.The conclusion drawn from the empirical analysis is that government still has a key role in the new wave of urbanization especially in the undeveloped cities.However, participation way should be “Government Guidance” instead of “Government Leadership”.

Key words： “Preference” of Government    Administrative Hierarchy    Urban Development

source:Finance & Trade Economics ,No.5,2015