Effects of the Northeast China Revitalization Strategy on Regional Economic Growth and Social Development

Abstract

Measuring the economic and social effects of the Northeast China Revitalization Strategy is critical to addressing regional sustainable development in China. To shed light on this issue, an integrated perspective was adopted that is combined with the difference-in-differences method to measure the effects of the strategy on economic growth and social development in Northeast China. The findings suggest that the strategy has significantly improved regional economic growth and per-capita income by increasing its gross domestic product (GDP) and GDP per capita by 25.70% and 46.00%, respectively. However, the strategy has significantly worsened the regional employment in the secondary industry of the region. In addition, the strategy has not significantly improved regional infrastructural road, education investment or social security, and has had no significant effect on mitigating regional disparity. In addition, the policy effects are highly heterogeneous across cities based on city size and characteristics. Therefore, there is no simple answer regarding whether the Northeast China Revitalization Strategy has reached its original goals from an integrated perspective. The next phase of the strategy should emphasize improving research and development (R&D) and human capital investments based on urban heterogeneity to prevent conservative path-dependency and the lock-in of outdated technologies.