A study on the impact of administrative division adjustment on regional economy based on synthetic control method
DOI:
https://doi.org/10.54691/bcpbm.v24i.1530Keywords:
Huizhou; Administrative division adjustment; Regional economy; Synthetic control method.Abstract
In recent times, the regional planning of Huizhou has been adjusted relatively frequently, from six counties in one province to Wuyuan and Jixi, until 1987, when Huizhou was renamed Huangshan City and Jixi was transferred to Xuancheng. Since then, "Huizhou" in the sense of administrative division has ceased to exist. To study the impact of this event on the regional economy, this paper compiles data from Jixi, Qimen, Yixian, Shexian, and Xuning counties since the founding of the country and uses a synthetic control method to empirically study the economic impact of the 1987 transfer of Xuancheng on Jixi. The results found that the economic development gap between Jixi and the other three counties was not significant before 1987, but after 1987, Jixi's economic development was significantly better than that of the other three counties, indicating that the 1987 administrative division promoted Jixi's economic development.
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