ORIGINAL RESEARCH article

Front. Sustain. Cities

Sec. Urban Economics

Financial Deregulation and Urban Resilience: Evidence from China's Place-Based Policy Experiment

  • 1. Agricultural and Rural Big Data Analysis and Intelligent Decision Research Center, School of Economics and Management, South China Agricultural University, Guangzhou, China

  • 2. Anhui University of Science and Technology, bengbu, China

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Abstract

Based on city-level panel data from 2001–2022, this study employs a spatial difference-in-differences approach to examine the impact of China's financial reform pilot zones on urban economic resilience. The results show that these reforms significantly improve urban resilience by approximately 2.6% annually, primarily through enhanced capital allocation efficiency (60%) and innovation capacity (40%). Significant positive spatial spillo-vers are also identified, accounting for 65% of the total policy effect. The findings highlight the importance of coordinated financial governance and provide policy insights for en-hancing regional economic resilience in developing economies.

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Keywords

financial reform, multi-period DID, economic resilience, Spatial spillover, Mechanism analysis

Received

01 October 2025

Accepted

21 November 2025

Copyright

© 2025 Yang and Li. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

*Correspondence: Zechen Yang

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All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.

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