Sustainability

Research

26 pages, 1807 KB

Open AccessArticle

Fiscal Intermediaries, Transfer Delivery, and Sustainable Local Growth: Evidence from China’s Province-Managed-County Reform

by Jianfeng Liu, Yanying Wei, Saihong Wang and Zuoji Dong

Sustainability 2026, 18(11), 5276; https://doi.org/10.3390/su18115276 (registering DOI) - 24 May 2026

Abstract

County economic growth in multi-tiered fiscal systems depends not only on the volume of transfers but also on whether those transfers pass through intermediary governments. This paper separates administrative delegation from fiscal chain redesign in province-managed county reforms in China. We study 1537 [...] Read more.

County economic growth in multi-tiered fiscal systems depends not only on the volume of transfers but also on whether those transfers pass through intermediary governments. This paper separates administrative delegation from fiscal chain redesign in province-managed county reforms in China. We study 1537 counties from 2000 to 2023 and compare D2, which creates direct province–county fiscal accounts, with D1, which delegates administrative authority but keeps the prefectural intermediary. The empirical design uses panel difference-in-differences estimators, synthetic difference-in-differences, double machine learning robustness checks, and exploratory heterogeneity diagnostics. Based on a placebo-corrected lower bound and a cross-estimator upper bound, D2 is associated with a conservative growth range of 0.35 to 1.0 percentage points per year, while the D1 estimate is imprecise. D2 is also associated with higher contemporaneous per capita fiscal expenditure, but the one-year lagged mediator check does not support a fully identified expenditure mechanism. Heterogeneity patterns are consistent with stronger effects in transfer-dependent counties, but they remain exploratory. The outcome is county economic growth, not a composite sustainability index. The results support a focused governance claim. More reliable transfer delivery is consistent with improved local growth capacity, while fiscal, social, and environmental sustainability remain outside the measured outcome space. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

37 pages, 6442 KB

Open AccessArticle

Heterogeneous Regional Integration: A Novel Interpretation of Spatial Inequality in Regional Productivity

by Changshuang Ye and Min Zhong

Sustainability 2026, 18(10), 4955; https://doi.org/10.3390/su18104955 - 14 May 2026

Viewed by 397

Abstract

Spatial inequality in productivity, closely related to the spatial discontinuity of regional markets, presents a constraint on sustainable development. This study proposes an analytical framework of structural market segmentation, based on the process of urban agglomeration development and the heterogeneity of regional integration [...] Read more.

Spatial inequality in productivity, closely related to the spatial discontinuity of regional markets, presents a constraint on sustainable development. This study proposes an analytical framework of structural market segmentation, based on the process of urban agglomeration development and the heterogeneity of regional integration in both time and space, offering a novel perspective for understanding the intricate relationship between the spatial distribution of productivity and the spatial structure of regional markets. Applying city and firm-level data, this study utilizes a fixed-effects model and instrumental variables method to reveal how structural market segmentations contribute to spatial inequalities in productivity. The results indicate that structural commodity market segmentation negatively impacts productivity growth, and structural labor market segmentation exerts both growth and distributional effects on productivity, providing a reasonable explanation for spatial inequalities in productivity. And it is further amplified by associated scale effects, agglomeration economies, and the spatial distribution of industries. The government should evaluate potential side effects of policies to establish a regional development pattern of mutual benefit and win-win outcomes. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

28 pages, 581 KB

Open AccessArticle

Navigating Financial Sustainability: Regional Financial Structures and Corporate Shadow Banking in China

by Luyang You, Yifan Xue, Ting Liu and Jacky Yuk Chow So

Sustainability 2026, 18(9), 4385; https://doi.org/10.3390/su18094385 - 29 Apr 2026

Viewed by 795

Abstract

Shadow banking poses a significant challenge to China’s financial sustainability. This study examines how city-level regional financial structure influences shadow banking activities among non-financial firms, with implications for building a more sustainable financial system. Exploiting data of Chinese listed firms from 2012 to [...] Read more.

Shadow banking poses a significant challenge to China’s financial sustainability. This study examines how city-level regional financial structure influences shadow banking activities among non-financial firms, with implications for building a more sustainable financial system. Exploiting data of Chinese listed firms from 2012 to 2023 and employing fixed-effects regressions with instrumental variable (IV) and dynamic GMM approaches to address endogeneity, the study finds that bank-dominated financial structures significantly reduce corporate shadow banking financing. This effect weakens among financially constrained firms, revealing shadow banking’s role as a gap-filling mechanism, but strengthens when firms exhibit higher digitalization or market attention through enhanced information transparency. These findings suggest that achieving long-term financial sustainability requires regionally nuanced policy interventions rather than uniform regulatory tightening. Instead, policy interventions should be regionally nuanced: expanding formal credit in inland provinces can mitigate financial exclusion, while fostering corporate digitalization helps bridge the information gap between lenders and firms. Furthermore, enhancing market-based oversight is essential to redirecting capital into more transparent and regulated frameworks. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

31 pages, 5715 KB

Open AccessArticle

Sustainability Analysis: Research on China’s Real Estate Economy and Business Based on the CFPS Data

by Yan Wang, Yan Shi, Xiao-Meng Zhou, Si-Yao Li, Zhong-Miao Sun, Xue-Chao Xia and Hai-Bin Huang

Sustainability 2026, 18(7), 3278; https://doi.org/10.3390/su18073278 - 27 Mar 2026

Viewed by 741

Abstract

Housing prices exert a notable impact on labor force sustainability, a key component of socioeconomic sustainable development. Skyrocketing housing costs tend to postpone young adults’ marriage and childbearing schedules, reduce their fertility intentions, and eventually lead to a shrinking labor force. It is [...] Read more.

Housing prices exert a notable impact on labor force sustainability, a key component of socioeconomic sustainable development. Skyrocketing housing costs tend to postpone young adults’ marriage and childbearing schedules, reduce their fertility intentions, and eventually lead to a shrinking labor force. It is therefore essential to explore the intrinsic links between housing prices, fertility intentions, and labor force sustainability. Based on data on China’s commercial housing prices, fertility rates, and related socioeconomic indicators from 2005 to 2024, this paper analyzes the theoretical mechanisms of how housing prices affect fertility intentions. It examines the trends of housing prices, housing price-to-income ratios, and disposable income growth at the national level, and further discusses the heterogeneous characteristics of these indicators in eastern, central, western, and northeastern China. In addition, this study analyzes the overall trends and regional disparities of fertility rates, conducts regression analyses combined with mortality rates and population growth rates, and implements correlation analyses between housing prices and fertility rates at national and regional levels. Using 2018 and 2022 CFPS data with control variables including education years, household registration type, employment nature, gender, and number of siblings, an improved interaction terms fixed-effects model is adopted to empirically examine the impact of housing prices on fertility intentions. The reliability of the results is verified by three methods: parallel trend test, alternative estimation method, and data source replacement. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

19 pages, 748 KB

Open AccessArticle

The Establishment of an Administrative Approval Center and Urban Green Innovation: Evidence from China

by Luoru Ma and Boen Zhu

Sustainability 2026, 18(6), 2726; https://doi.org/10.3390/su18062726 - 11 Mar 2026

Viewed by 316

Abstract

Economic goals and non-economic goals often conflict in practice. Taking China as an example, this paper examines the impact of Administrative Approval Center (AAC) establishment on urban green innovation. A multi-period difference-in-difference (DID) method is applied to city-level panel data (2000–2022) in China [...] Read more.

Economic goals and non-economic goals often conflict in practice. Taking China as an example, this paper examines the impact of Administrative Approval Center (AAC) establishment on urban green innovation. A multi-period difference-in-difference (DID) method is applied to city-level panel data (2000–2022) in China to estimate the effect of AAC establishment on urban green innovation. The research results indicate that the establishment of AAC reduces urban green innovation due to the increased fiscal burden on local governments. This negative impact is particularly evident in the eastern and central regions, cities with stronger environmental regulations, or low-administrative-level cities. The conclusions of this paper have reference significance for other developing countries. To achieve sustainable development, central governments should enhance fiscal support and safeguards, local governments should implement differentiated environmental regulations, and digital technologies should be leveraged to reduce physical infrastructure costs and alleviate fiscal pressures. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

29 pages, 4019 KB

Open AccessArticle

Development Quality of China’s Pharmaceutical Manufacturing Industry: A Perspective Based on Multidimensional Evaluation and Spatiotemporal Evolution

by Zhenzhen An, Minghao Yang, Yumeng Zhang and Lihua Sun

Sustainability 2026, 18(2), 1010; https://doi.org/10.3390/su18021010 - 19 Jan 2026

Viewed by 900

Abstract

The pharmaceutical manufacturing industry in China is undergoing a critical transition toward high-quality development, making a systematic assessment of its Development Quality of the Pharmaceutical manufacturing industry (DQPI) essential for evidence-based policy formulation. However, a comprehensive evaluation system incorporating the dimensions of open [...] Read more.

The pharmaceutical manufacturing industry in China is undergoing a critical transition toward high-quality development, making a systematic assessment of its Development Quality of the Pharmaceutical manufacturing industry (DQPI) essential for evidence-based policy formulation. However, a comprehensive evaluation system incorporating the dimensions of open and green development, as well as a spatiotemporal evolution analysis, remains underdeveloped. To address these gaps, this study develops a five-dimensional evaluation system for DQPI comprising industrial scale, economic benefits, innovation, open development, and green development. Using data from 2011 to 2023 at three spatial scales (national, regional, and provincial), this study applies entropy weight method, coupling coordination degree model, regional differences analysis, and spatial autocorrelation analysis to conduct a multidimensional evaluation and spatiotemporal evolution analysis. The results indicate a significant upward trend in China’s DQPI at the national level, with innovation being the primary driver. However, economic benefits act as a key constraint, and green development has recently declined. Spatially, inter-regional differences emerge as the primary source of overall differences, manifesting as a distinct east–west gradient pattern and a core-periphery structure characterized by high-high and low-low clusters. This study uncovers the key structural challenges: an efficiency-profitability paradox within the innovation-to-benefit transformation, and intensifying regional divergence. To address these, it proposes a synergistic ‘Core Leadership–Periphery Breakthrough’ governance framework, informing the transition of the pharmaceutical manufacturing industry toward high-quality and sustainable development. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

18 pages, 4785 KB

Open AccessArticle

Population Growth–Decline Differentiation and Regional Inequality in the Yangtze River Delta: Implications for Sustainable Regional Development

by Xianhong Qin and Jingchun Yang

Sustainability 2025, 17(24), 11011; https://doi.org/10.3390/su172411011 - 9 Dec 2025

Viewed by 1484

Abstract

During China’s transition toward negative population growth, spatial differentiation in demographic change has become increasingly pronounced, revealing deep-seated disparities that challenge sustainable development efforts. This study examines patterns of population growth and decline in the Yangtze River Delta (YRD) from 2000 to 2024 [...] Read more.

During China’s transition toward negative population growth, spatial differentiation in demographic change has become increasingly pronounced, revealing deep-seated disparities that challenge sustainable development efforts. This study examines patterns of population growth and decline in the Yangtze River Delta (YRD) from 2000 to 2024 at the provincial level and for 2010–2020 at the city and county levels. Using decennial population census data together with annual series from provincial and municipal statistical yearbooks, the analysis combines population growth rates with inequality indices and spatial autocorrelation measures to identify disparities and redistribution dynamics. The results show a marked deceleration of overall growth, with natural growth turning negative and mechanical growth becoming the dominant driver. They also reveal a pronounced core–periphery structure in which core metropolitan areas and urban districts continue to attract residents, while many ordinary counties and peripheral cities experience persistent shrinkage. Population inequality remains modest between provinces but widens within provinces, driven mainly by divergence between cities and counties. These findings are consistent with SDG 10 and SDG 11 on reducing spatial disparities and promoting inclusive, sustainable urbanization, underscoring the need to balance metropolitan concentration with policies that strengthen demographic resilience in shrinking regions. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

20 pages, 411 KB

Open AccessArticle

Foreign Direct Investment and the Sustainable Growth of Enterprise Productivity: Evidence from Chinese High-Tech Enterprises

by Shurui Zhang, Xiaofei Tang, Yinuo Hu and Xujie Fan

Sustainability 2025, 17(23), 10756; https://doi.org/10.3390/su172310756 - 1 Dec 2025

Cited by 1 | Viewed by 1050

Abstract

The dynamic relationship between foreign direct investment (FDI) and sustainable development has become a central topic of inquiry for academics and policymakers with rapid global economic growth. This study aims to clarify the impact mechanism and regional heterogeneity of FDI on total factor [...] Read more.

The dynamic relationship between foreign direct investment (FDI) and sustainable development has become a central topic of inquiry for academics and policymakers with rapid global economic growth. This study aims to clarify the impact mechanism and regional heterogeneity of FDI on total factor productivity (TFP) of Chinese high-tech enterprises, providing empirical evidence for optimizing foreign investment policies and promoting sustainable growth of enterprises. We utilized panel data from 30 provinces in China from 2009 to 2022. The DEA-Malmquist index method is firstly employed to dynamically measure the TFP of high-tech enterprises, while a static panel model is utilized to empirically test the impact of FDI on TFP. A particular emphasis is then placed on analyzing the regional heterogeneity of technology spillovers. The findings reveal that FDI significantly enhances both the production efficiency and the technological innovation capacity of high-tech enterprises overall, thereby facilitating the sustainable growth of enterprises. Furthermore, technological innovation emerges as the core driving force behind TFP growth, whereas the expansion of labor input significantly decreases efficiency improvements. Notably, the technology spillover effects of FDI illustrate significant heterogeneity across different regions and types of enterprises. To promote the sustainable development of high-tech enterprises, this study provides evidence-based insights for foreign direct investment technologies to better enhancing the overall sustainable competitiveness of the economy in China. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

27 pages, 2240 KB

Open AccessArticle

Regional Determinants of the Development of Short Food Supply Chains in Poland

by Magdalena Raftowicz and Bartosz Korabiewski

Sustainability 2025, 17(21), 9772; https://doi.org/10.3390/su17219772 - 2 Nov 2025

Cited by 2 | Viewed by 1242

Abstract

This study investigates the regional drivers shaping the development of short food supply chains (SFSCs). SFSCs are increasingly recognized as sustainable alternatives to industrial food systems; however, their development dynamics at the regional level remain poorly understood. Drawing on structured interviews and surveys [...] Read more.

This study investigates the regional drivers shaping the development of short food supply chains (SFSCs). SFSCs are increasingly recognized as sustainable alternatives to industrial food systems; however, their development dynamics at the regional level remain poorly understood. Drawing on structured interviews and surveys with regional agricultural institutions, combined with official statistical data, we applied Spearman’s rank correlation to test five hypotheses related to structural, institutional, historical, and demand-related factors across 16 provinces in Poland. The results revealed weak or statistically non-significant associations between most of the analyzed factors and the development of SFSCs, with the notable exception of a strong correlation with urban population size. These findings challenge conventional assumptions about the role of agrarian or policy conditions in supporting localized food systems and suggest that regional food policy should focus more on enhancing urban–rural linkages and consumer engagement to foster sustainable food supply models. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

28 pages, 2113 KB

Open AccessArticle

The Role of New-Quality Productivity in the Sustainable Development of the Economic–Social–Environmental System: Evidence from 67 Ethnic Counties in Sichuan Province

by Siyao Du and Jie Yang

Sustainability 2025, 17(21), 9609; https://doi.org/10.3390/su17219609 - 29 Oct 2025

Cited by 1 | Viewed by 1305

Abstract

Fostering and steering New-Quality Productivity (NQP) to underwrite the sustainable development of the Economic–Social–Environmental System (ESES) in ethnic-minority regions is both an intrinsic requirement and a strategic fulcrum for advancing modernization at the sub-national level. Despite growing policy attention, county-level evidence on how [...] Read more.

Fostering and steering New-Quality Productivity (NQP) to underwrite the sustainable development of the Economic–Social–Environmental System (ESES) in ethnic-minority regions is both an intrinsic requirement and a strategic fulcrum for advancing modernization at the sub-national level. Despite growing policy attention, county-level evidence on how NQP translates into sustainability outcomes—and through which mechanisms—remains insufficient. Embedding NQP within a region-specific sustainability framework, this study first articulates the theoretical channels through which NQP can transform and sustain ethnic areas. It then exploits panel data covering 67 ethnic counties in Sichuan Province from 2005 to 2024 and applies benchmark regressions, multiple-mediator models, and spatial Durbin specifications to identify the mechanisms and impact footprints of NQP. Three core findings emerge: (1) NQP exerts a robust, positive effect on ESE sustainability that varies across geography, development stages, and sectoral structures. (2) Technological innovation, industrial upgrading, and optimized resource allocation all transmit NQP’s influence, with industrial upgrading displaying the strongest mediating power. (3) NQP generates positive spatial spillovers that extend its sustainability dividends to neighboring ethnic counties. These results sharpen the academic understanding of the NQP–sustainability nexus in ethnic contexts, expand NQP assessment frameworks, and furnish county-level policymakers with evidence to design differentiated strategies that align NQP cultivation with broader goals of regionally inclusive and sustainable development. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

25 pages, 1297 KB

Open AccessArticle

Regional Cooperation and the Urban–Rural Income Inequality: Evidence from China’s East–West Cooperation Program

by Zhijie Song and Shaopeng Zhang

Sustainability 2025, 17(20), 9084; https://doi.org/10.3390/su17209084 - 14 Oct 2025

Cited by 1 | Viewed by 3010

Abstract

Persistent regional imbalances and widening urban–rural income gaps hinder progress toward Sustainable Development Goal 10 (Reduced Inequalities). In response, China has implemented a typical regional cooperation program—East–West Cooperation (EWC). Using a balanced panel of 642 western counties from 2013 to 2020 and the [...] Read more.

Persistent regional imbalances and widening urban–rural income gaps hinder progress toward Sustainable Development Goal 10 (Reduced Inequalities). In response, China has implemented a typical regional cooperation program—East–West Cooperation (EWC). Using a balanced panel of 642 western counties from 2013 to 2020 and the staggered difference-in-differences (DIDs) model, we assess the impact of EWC on the urban–rural income gap. We show that EWC narrows the urban–rural income gap, primarily by increasing rural incomes rather than changing urban incomes. Mechanism analyses indicate that expanded rural employment and higher agricultural production efficiency are the principal channels. The greater the economic disparity and the shorter the distance between paired counties, the stronger the effect of EWC. This effect is particularly pronounced in southwestern assisted counties and in agriculture-intensive assisted counties. The above evidence suggests that horizontal regional cooperation can deliver equity-enhancing growth. Policy should prioritize rural-first resource allocation, employment-oriented labor cooperation, and agricultural upgrading, while refining pairing rules to account for the magnitude of economic gaps and geographic proximity. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

28 pages, 1092 KB

Open AccessArticle

The Impact of Market-Oriented Allocation of Data Elements on Enterprises’ New Quality Productive Forces

by Yacheng Zhou, Guang Li, Tong Sun and Weidong Huo

Sustainability 2025, 17(18), 8262; https://doi.org/10.3390/su17188262 - 15 Sep 2025

Cited by 1 | Viewed by 1508

Abstract

This paper takes the quasi-natural experiment from the National Big Data Comprehensive Pilot Zone (NBDCPZ) in China as an example to examine the impact of market-oriented allocation of data elements on enhancing enterprises’ New Quality Productive Forces (NQPF). Based on panel data from [...] Read more.

This paper takes the quasi-natural experiment from the National Big Data Comprehensive Pilot Zone (NBDCPZ) in China as an example to examine the impact of market-oriented allocation of data elements on enhancing enterprises’ New Quality Productive Forces (NQPF). Based on panel data from China’s A-share listed enterprises on the Shanghai and Shenzhen stock exchanges between 2011 and 2022, this study employs a robust policy evaluation method, the multi-way fixed effects staggered difference-in-differences (MWFE Staggered DID) method, to analyze the impact of the NBDCPZ on NQPF comprehensively. The key findings are threefold: First, the NBDCPZ significantly boosts enterprises’ NQPF within their jurisdictions. Second, the NBDCPZ enhances NQPF by accelerating enterprise digital transformation, and the digital talent can amplify the promotional effect of the NBDCPZ on enterprise digital transformation. Third, the NQPF-enhancing effects are more pronounced for privately owned enterprises (POEs), foreign-invested enterprises (FIEs), and smaller enterprises, whereas they exhibit an inhibitory impact on state-owned enterprises (SOEs) and large enterprises. Fourth, the promotional effect of the NBDCPZ on enterprises’ NQPF varies across different industries. Furthermore, regional (city-level) digital infrastructure and financial development levels amplify the NQPF-enhancing effects of the NBDCPZ. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

34 pages, 1278 KB

Open AccessArticle

The Coordination of Monetary and Local Government Fiscal Policies and Local Fiscal Sustainability in China

by Hanlin Xia and Lin Zhang

Sustainability 2025, 17(16), 7555; https://doi.org/10.3390/su17167555 - 21 Aug 2025

Cited by 3 | Viewed by 4936

Abstract

The growing importance of local governments, alongside the swift development of their bond markets, provides a novel framework for examining the coordination of monetary and local government fiscal policies in China. This investigation contributes a new viewpoint on local fiscal sustainability by emphasizing [...] Read more.

The growing importance of local governments, alongside the swift development of their bond markets, provides a novel framework for examining the coordination of monetary and local government fiscal policies in China. This investigation contributes a new viewpoint on local fiscal sustainability by emphasizing the role of policy coordination. Empirical evidence derived from regression models and proxy structural vector autoregression (Proxy SVAR) analyses conducted in this study substantiates the presence of coordination between monetary and local government fiscal policies in China; nevertheless, such coordination may pose risks to long-term local fiscal sustainability. Drawing on empirical data, this study utilizes a dynamic stochastic general equilibrium (DSGE) model that integrates key features characteristic of the Chinese economy to investigate the coordination of monetary and local government fiscal policies, as well as the effects of this coordination on local fiscal sustainability. The results derived from the baseline model indicate that although monetary and local fiscal policies in China are coordinated, such coordination facilitates the accumulation of local government debt, which ultimately compromises long-term local fiscal sustainability. Furthermore, the baseline model is extended and examined through multiple analytical approaches. When local government competition is introduced, monetary policy and local government fiscal policy become disconnected, which undermines local fiscal sustainability. Conversely, when local government cooperation is introduced, monetary policy and local government fiscal policy become more coordinated, which in turn improves local fiscal sustainability. Moreover, a higher steady-state debt level among local governments promotes greater coordination between monetary and fiscal policies, resulting in stronger fiscal sustainability. However, the imposition of debt constraints on local governments diminishes this coordination and adversely affects local fiscal sustainability. Additionally, in the absence of local financial friction, monetary and local fiscal policies exhibit increased coordination; however, this may potentially undermine long-term local fiscal sustainability. It is therefore imperative for the central government of China to prioritize the harmonization of monetary and local fiscal policies and to consider their implications for local fiscal sustainability, while simultaneously encouraging intergovernmental cooperation and the establishment of an integrated large-scale market. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

21 pages, 488 KB

Open AccessArticle

Regional Concentration of FDI and Sustainable Economic Development

by Sarhad Khdir and Andrzej Cieślik

Sustainability 2025, 17(16), 7449; https://doi.org/10.3390/su17167449 - 18 Aug 2025

Cited by 2 | Viewed by 3430

Abstract

Foreign direct investment (FDI) plays a vital role in fostering sustainable economic development, particularly in emerging and post-conflict economies. Yet, the benefits of FDI inflows depend not only on the size of investment but also on how evenly it is distributed across regions. [...] Read more.

Foreign direct investment (FDI) plays a vital role in fostering sustainable economic development, particularly in emerging and post-conflict economies. Yet, the benefits of FDI inflows depend not only on the size of investment but also on how evenly it is distributed across regions. In the Kurdistan Region of Iraq (KRI), FDI inflows have grown considerably over the past two decades, remaining heavily concentrated, with 93% of total investment absorbed by the capital city, Erbil, and only 7% distributed across the remaining governorates. This study investigates the determinants of geographic imbalances in FDI inflows within the KRI. Drawing on a unique firm-level dataset from 2007 to 2021 and employing a negative binomial logit model, the results reveal that superior infrastructure, greater market accessibility, proximity to international borders, airport connectivity, and digital network penetration are significant drivers of FDI concentration. We suggest that such spatial inequality poses significant risks to inclusive and sustainable growth, threatening to entrench regional disparities and reduce resilience to economic and local political disruptions in the long term. To mitigate these issues, we recommend a regionally differentiated policy framework that includes targeted investment incentives tailored to local comparative advantages, strategic infrastructure upgrades in underdeveloped areas, strengthened investor protections, streamlined regulatory processes, and the establishment of investment promotion agencies (IPAs) to enhance investor engagement and aftercare. By diagnosing the causes of FDI concentration and offering actionable strategies, this study provides evidence-based insights for fostering balanced, inclusive, and sustainable economic development in the KRI and other post-conflict regions confronting similar challenges. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

20 pages, 1675 KB

Open AccessArticle

Regional Vulnerability to Food Insecurity: The Case of Indonesia

by Indri Arrafi Juliannisa, Hania Rahma, Sri Mulatsih and Akhmad Fauzi

Sustainability 2025, 17(11), 4800; https://doi.org/10.3390/su17114800 - 23 May 2025

Cited by 9 | Viewed by 8176

Abstract

Regional vulnerability manifests in various ways, one of which is food insecurity. Food insecurity is a global challenge and a key focus of Sustainable Development Goal 2, which aims to achieve zero hunger. This study aims to assess the level of regional vulnerability [...] Read more.

Regional vulnerability manifests in various ways, one of which is food insecurity. Food insecurity is a global challenge and a key focus of Sustainable Development Goal 2, which aims to achieve zero hunger. This study aims to assess the level of regional vulnerability to food insecurity for 34 provinces in Indonesia. The components of vulnerability are defined by exposure, sensitivity, and adaptive capacity, while the dimensions of food insecurity are assessed through availability and access-utility. This study employed the composite index method to assess regional vulnerability to food insecurity in Indonesia for the year 2021. The analysis involved three calculation steps and utilized a subjective direct technique for indicator weighting. The findings emphasize the significant role of exposure in a region’s susceptibility to food insecurity. Mapping the conditions of exposure, sensitivity, and adaptive capacity indicates that 11.7% of Indonesian provinces are extremely vulnerable, with high exposure and sensitivity, and low adaptive capacity. To address these issues, these provinces should focus on diversifying food sources, improving market access for farmers, investing in essential agricultural infrastructure, and enhancing the agricultural sector through human resource development. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

17 pages, 1704 KB

Open AccessArticle

Economic Structural Adjustment Promoting Sustainable Growth in Shanghai: A Two-Decade Study (2004–2023)

by Danjun Wang, Yunqi Zhou and Fengwei Wang

Sustainability 2025, 17(10), 4318; https://doi.org/10.3390/su17104318 - 9 May 2025

Cited by 1 | Viewed by 2469

Abstract

This study investigates the structural transformation of Shanghai’s economy (2004–2023), analyzing the interplay between industrial shifts and sustainable growth. While prior work has focused on short-term trends or isolated sectors, we provide the first comprehensive analysis of Shanghai’s two-decade transition from manufacturing to [...] Read more.

This study investigates the structural transformation of Shanghai’s economy (2004–2023), analyzing the interplay between industrial shifts and sustainable growth. While prior work has focused on short-term trends or isolated sectors, we provide the first comprehensive analysis of Shanghai’s two-decade transition from manufacturing to services, leveraging annual nominal GDP data and three forecasting models (Autoregressive Integrated Moving Average model ARIMA, Support Vector Machine SVM, and Grey Model GM). Our findings reveal that the tertiary sector’s contribution surged from 50.8% to 75.2% of GDP, driven by finance, technology, and real estate, while the secondary sector declined to 24.6%. The autoregressive integrated moving average ARIMA(1,1) model outperformed alternatives (mean absolute percentage error 2.97%), projecting GDP growth to CNY 60,321.54 trillion by 2026. Crucially, we demonstrate that Shanghai’s structural evolution aligns with advanced urban economies (e.g., New York, Tokyo), yet retains distinct industrial resilience due to China’s dual-circulation policy. These results challenge assumptions about manufacturing decline, instead highlighting a rebalancing toward high-value-added sectors. The study contributes (1) a validated framework for forecasting urban GDP in policy-stabilized economies and (2) empirical evidence for prioritizing tertiary innovation in sustainable development strategies. Policymakers and researchers can leverage these insights to navigate trade-offs between growth, equity, and environmental goals in rapidly urbanizing regions. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

26 pages, 9088 KB

Open AccessArticle

The Interaction Between Sustainable Development and Cultural Infrastructure: An Empirical Analysis of France and Romania in the Era of Smart Technologies and Future Research Directions

by Alexandru Florin Preda, Raluca Florentina Cretu, Viorel-Costin Banta, Elena Claudia Serban, Mihaela Diana Oancea-Negescu, Adrian Anica-Popa, Cornel Dumitru Crecana and Andreea Gabriela Tanase

Sustainability 2025, 17(7), 3063; https://doi.org/10.3390/su17073063 - 30 Mar 2025

Cited by 1 | Viewed by 2847

Abstract

Culture is the mark we leave on history, and cultural infrastructure supports the quality of life of people in a community. This paper describes the interaction between sustainable development (an economic component, GDP per capita, and a social component, poverty) and cultural infrastructure [...] Read more.

Culture is the mark we leave on history, and cultural infrastructure supports the quality of life of people in a community. This paper describes the interaction between sustainable development (an economic component, GDP per capita, and a social component, poverty) and cultural infrastructure in the cases of France and Romania, through a comparative analysis and how multidisciplinary education can help strengthen this link. To achieve this goal, the authors used linear regression combined with bibliometric analyses (a hybrid model), which gives this paper originality. This systematic literature review and bibliometric analysis will help to map the culture, education, and sustainable development sector and to establish new research directions. The authors of this study identified four future research themes and formulated policy recommendations and a practical smart technology solution in the context of sustainability. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

20 pages, 1391 KB

Open AccessArticle

Effective Cohesion Policy? Long-Term Economic and Social Convergence in Poland

by Marcin Bogdański and Marcin Janusz

Sustainability 2025, 17(3), 954; https://doi.org/10.3390/su17030954 - 24 Jan 2025

Cited by 1 | Viewed by 3530

Abstract

The aim of this article is to determine the relationship between the processes of economic and social convergence in Polish voivodeships. The correlation between these two processes is still unclear and the mechanisms behind them are not fully discovered. The goal of this [...] Read more.

The aim of this article is to determine the relationship between the processes of economic and social convergence in Polish voivodeships. The correlation between these two processes is still unclear and the mechanisms behind them are not fully discovered. The goal of this article requires determining whether the changes in the level of disproportions in the GDP per capita translate into changes in social cohesion and what is the nature of this relationship. Those issues are still relevant and important due to their cognitive and practical value. In view of the above, using various analysis tools (i.e., the correlation coefficient and regression function), the authors determine whether economic convergence (both β and σ) and social convergence (with the use of the TOPSIS method) is observed in Polish regions in the years 2000–2022. The obtained results allow us to state that in the analyzed period, economic and social divergence processes occurred in Poland. The constantly deepening disproportions seem to be relatively permanent and caused by differences in the demographic potential (including urbanization potential) of individual regions that are difficult to eliminate, as well as by different development trajectories during the period of political transformation after 1989. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

26 pages, 3183 KB

Open AccessArticle

Regional Competitiveness for Achieving Sustainable Development of Hail Region, Saudi Arabia

by Nahla Chaaben, Zied Elleuch, Bassem Kahouli and Kaouther Zneidi

Sustainability 2025, 17(1), 156; https://doi.org/10.3390/su17010156 - 28 Dec 2024

Cited by 6 | Viewed by 4061

Abstract

The concept of competitiveness has had a notable influence on the strategies and policies adopted recently. In particular, the concept of regional competitiveness has attracted significant interest from policymakers due to its capacity to assess and compare different territories in the absence of [...] Read more.

The concept of competitiveness has had a notable influence on the strategies and policies adopted recently. In particular, the concept of regional competitiveness has attracted significant interest from policymakers due to its capacity to assess and compare different territories in the absence of an established policy or conceptual framework. Nevertheless, the concept of regional competitiveness itself has been a topic of debate among scholars, along with the dimensions that should be included in such a concept. The aim of this study is to examine and evaluate the competitive landscape at the regional level in Saudi Arabia. In this regard, the Regional Competitiveness Index (RCI), as proposed by the European Union, provides an appropriate framework for analysis. The index is made up of eleven pillars classified into three sub-indices: basic, efficiency, and innovation assess factors pertinent to businesses that extend beyond those relevant to the residents of the regions in question and their quality of life. The findings indicate that the RCI indicator performs robustly to the variable reduction methods employed. Moreover, the study’s results indicate that Riyadh and Makkah are the two regions with the highest scores of the index, with values of 18.705 and 17.949, respectively. In contrast, the Hail region exhibits an average performance in comparison to the other regions. The RCI scores indicate notable disparities in competitiveness between provinces. In light of these findings, it can be proposed that efforts to enhance a region’s competitive standing should be accompanied by efficacious enhancements to its economic and social facets to ensure sustainability. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

29 pages, 1343 KB

Open AccessArticle

Impact of Anti-Corruption on the Sustainability of Local Government Debt in China: The Moderating Role of Fiscal Transparency

by Li Yang, Wenxiu Hu, Zhenxing Su and Jianqi Qiao

Sustainability 2024, 16(21), 9507; https://doi.org/10.3390/su16219507 - 31 Oct 2024

Viewed by 5030

Abstract

In the process of government management, officials may engage in rent-creation and rent-seeking within finance and debt management for personal gain, leading to corruption and jeopardizing government debt sustainability. Can anti-corruption effectively ameliorate this predicament? Based on the growing severity of global debt [...] Read more.

In the process of government management, officials may engage in rent-creation and rent-seeking within finance and debt management for personal gain, leading to corruption and jeopardizing government debt sustainability. Can anti-corruption effectively ameliorate this predicament? Based on the growing severity of global debt sustainability, 30 provincial-level administrative regions in China are used as research samples to explore the influence of China’s anti-corruption campaign targeting officials on local government debt sustainability and the moderating role of fiscal transparency. The results indicate that enhancing anti-corruption efforts will improve the sustainability of local government debt, while fiscal transparency will magnify this positive impact. Furthermore, regional heterogeneity analysis demonstrates that, in developed regions, the impact of anti-corruption on debt sustainability and the moderating impact of fiscal transparency have been bolstered by effective policy implementation. Our research findings not only unveil the influence of anti-corruption on local government debt sustainability and the crucial role of fiscal transparency, but also offer fresh insights to enable local government authorities to manage debt sustainably. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

20 pages, 1812 KB

Open AccessArticle

Towards a Sustainable Property Tax System for Regional Development by Integrating the Antifragility Concept

by Malgorzata Renigier-Bilozor, Alina Źróbek-Różańska and Artur Janowski

Sustainability 2024, 16(17), 7467; https://doi.org/10.3390/su16177467 - 29 Aug 2024

Cited by 2 | Viewed by 2874

Abstract

This study presents a novel approach for developing a sustainable property tax system, aimed at enhancing economic stability and promoting sustainable regional development. This research employs a phenomenological methodology, which includes a comprehensive review of the scientific and practical literature, and their critique [...] Read more.

This study presents a novel approach for developing a sustainable property tax system, aimed at enhancing economic stability and promoting sustainable regional development. This research employs a phenomenological methodology, which includes a comprehensive review of the scientific and practical literature, and their critique and synthesis. The authors also draw on their experiences with the tax system transformation within their own country. This study explores the integration of a consensual governance approach and the concept of antifragility into the complex issue of property taxation. The primary objective is to design a property tax management model that not only fulfills its economic functions, but also fosters an antifragile taxpayer society, contributing to the creation of a resilient and socially cohesive community. The findings demonstrate that a consensual and transparent property tax system, actively involving local stakeholders in decision-making processes, not only reduces resistance to tax reforms but also strengthens a community’s ability to adapt to economic fluctuations. By integrating the principles of good governance and sustainable development, the proposed model promotes socio-economic stability and provides a flexible framework that can accommodate diverse stakeholders needs, ultimately benefiting the broader community through enhanced social cohesion and long-term sustainability. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

20 pages, 3216 KB

Open AccessArticle

Examining the Impact of Urban Connectivity on Urban Innovation Efficiency: An Empirical Study of Yangtze River Delta in China

by Chuankai Yang, Shuaijun Xue, Peng Gao and Xu Guo

Sustainability 2024, 16(13), 5647; https://doi.org/10.3390/su16135647 - 2 Jul 2024

Cited by 2 | Viewed by 2549

Abstract

Innovation serves as a vital catalyst for sustainable urban development, with the enhancement of urban innovation efficiency representing a critical strategy to bolster cities’ innovative capacity. Rigorous scientific measurement of urban innovation efficiency and thorough investigation into the key factors influencing it are [...] Read more.

Innovation serves as a vital catalyst for sustainable urban development, with the enhancement of urban innovation efficiency representing a critical strategy to bolster cities’ innovative capacity. Rigorous scientific measurement of urban innovation efficiency and thorough investigation into the key factors influencing it are imperative for advancing urban innovation capacity. Despite this significance, prior research has largely overlooked the impact of urban connections on urban innovation efficiency. Therefore, this paper undertakes the task of measuring the innovation efficiency of 27 cities within China’s Yangtze River Delta (YRD) region using an improved DEA model, while also examining the associated influencing factors. The primary findings are as follows: (1) The comprehensive efficiency of the 27 cities in the YRD remains relatively low, with pure technical efficiency representing a notable constraint, while scale efficiency demonstrates higher overall performance. (2) The cities can be classified into four distinct categories: innovation-leading, innovation-optimizing, innovation-breaking, and innovation-improving cities. (3) The urban innovation efficiency within the YRD exhibits negative spatial spillover effects. (4) And notably, local economic and social characteristics such as human capital and degree of openness play a positive role in enhancing innovation efficiency in YRD cities. Conversely, factors such as economic foundation and government involvement exhibit negative contributions to innovation efficiency enhancement in YRD cities. Additionally, population mobility between cities is identified as a significant contributor to urban innovation efficiency. This study sheds light on the complex dynamics shaping urban innovation efficiency and underscores the importance of leveraging urban connections to bolster innovation capacity in the YRD and beyond. Full article

(This article belongs to the Special Issue Regional Economics, Policies and Sustainable Development)

► Show Figures

Figure 1

Journal Menu

Journal Browser

Regional Economics, Policies and Sustainable Development

Share This Special Issue

Special Issue Editors

Special Issue Information

Keywords

Benefits of Publishing in a Special Issue

Published Papers (22 papers)

Research

Further Information

Guidelines

MDPI Initiatives

Follow MDPI