Does urbanization promote the urban–rural equalization of basic public services? Evidence from prefectural cities in China

Kaiming Cheng and Shucheng Liu

Applied Economics, 2024, vol. 56, issue 29, 3445-3459

Abstract: The question of how urbanization affects the urban–rural equalization of basic public services (BPS) remains unexplored, although BPS equalization is an important means of achieving common prosperity. Based on the BPS supply and demand perspective, we examine the path mechanisms through which urbanization affects urban–rural BPS equalization. Based on panel data from Chinese prefectural cities from 2003 to 2020, a TOPSIS model, combined CRITIC-entropy weights and an information entropy function, are used to measure the level of urban–rural BPS equalization. Considering the spatial spillover effect of urbanization, a dynamic spatial Durbin model is constructed to empirically examine the impact of urbanization. The study found that, overall, the direct and indirect effects of urbanization on urban–rural BPS equalization are significantly positive, and urbanization is conducive to urban–rural BPS equalization improvement in cities and surrounding areas. The effect of urbanization on urban–rural BPS equalization significantly varies between different regions. The study concludes that the process of people-centred urbanization should be accelerated to optimize the spatial layout of BPS, promote high-quality economic development and achieve common prosperity.

Date: 2024
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DOI: 10.1080/00036846.2023.2206625

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