The Impact of City Ranking on Industry Shifting: An Empirical Study

Xinyu Wang, Wensen Wu () and Haodong Li
Additional contact information
Xinyu Wang: School of Economics and Management, North China University of Technology, Beijing 100144, China
Wensen Wu: School of Economics and Management, North China University of Technology, Beijing 100144, China
Haodong Li: School of Economics and Management, North China University of Technology, Beijing 100144, China

Sustainability, 2023, vol. 15, issue 11, 1-16

Abstract: This paper focuses on whether city honor competition has led to a sectoral shift. The research argues that cities’ actions in pursuing honor have led to their changing from the manufacturing sector to the service sector. This paper attempts to construct a theory from city competition to sector shift. The research methods used are year-by-year propensity score matching and the difference-in-difference method. The results of the regressions prove that a city honor competition leads to a shift from the manufacturing sector to the service sector. The true value of this effect is approximately between 2.3274 and 3.0393, showing that the city honor competition promotes a sectoral shift. The trend of the city’s economy towards the service sector is evident in the competition. The robustness test proves that the model satisfies the matching equilibrium assumption. The placebo test proves that other unobserved factors do not affect the policy. The heterogeneity test finds that the larger the city size, the stronger the effect of city honors on the sector.

Keywords: city honor competition; service sector; differences-in-differences; propensity score matching (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/11/8930/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/11/8930/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:11:p:8930-:d:1161735

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().