 Capital flows under integration: Evidence from China's metropolitan area development planningXuebing Dong, Binbin Miao and Ruonan Chi China Economic Review, 2023, vol. 82, issue C Abstract: This paper uses the introduction of metropolitan area development planning (MADP) in China to examine the effects of regional integration on capital flow in the context of intranational investment. Using the data of inter-regional capital flows that aggregated by data of listed companies in China from 1999 to 2019, we find that MADP can improve inter-regional investment substantially at the city-pair level. The mechanism analysis indicates that MADP fosters capital flow by diminishing institutional distance, erasing market segmentation, and enhancing transportation infrastructure connectivity. Furthermore, the influence of MADP on capital flows is more significant in cities endowed with robust big data application foundations, lower levels of total factor productivity (TFP), and in city pairs with no administrative borders. Keywords: Regional integration; Metropolitan area development planning; Inter-regional investment; Border; Institutional distance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:82:y:2023:i:c:s1043951x23001517 DOI: 10.1016/j.chieco.2023.102066 Access Statistics for this article China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu More articles in China Economic Review from Elsevier |
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