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The Incentive Role of Creating "Cities" in China

Li, Lixing
Munich Personal RePEc Archive · Reports
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developmentfederalismgrowthproperty-rightsscopesecession
This paper examines a distinctive mechanism of providing incentives to local governments – upgrading counties to "cities". In China, awarding city status to existing counties is the dominant way of creating new urban administrative units, during which the local government gets many benefits. Using a
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