The Economic Growth Effect of National-level New Areas: Empirical Evidence from Chinese Cities

Abstract

As a crucial regional development strategy in China, the actual policy effects of National-level New Areas require rigorous scientific evaluation. This paper, based on a panel dataset of Chinese cities from 2003 to 2021, treats the establishment of these new areas as a quasi-natural experiment. By employing a Difference-in-Differences (DID) model, we strictly identify the causal effect of this policy on urban economic growth. The research finds that the establishment of National-level New Areas has a significant overall promotional effect on the economic growth of their host cities,confirming the policy's macroeconomic effectiveness.However,further heterogeneity analysis reveals a clear regional divergence in the policy's impact: its stimulating effect on the economy is far stronger in the eastern region than in the central and western regions. This conclusion not only provides core empirical evidence for a comprehensive evaluation of the National-level New Area policy but also offers important insights for optimizing future regional policy layouts, promoting regional coordination, and fostering high-quality development.