Drivers of urban fixed assets investment efficiency across western China
Yonggang Li, Cong Luo, Chenggang Li, Wanyue Zhang, Mu Yue
Keywords:
Urban fixed assets, Investment efficiency, Group Method of Data Handling algorithm, non-parametric regression model
Abstract:
Many factors impact urban fixed-asset investment efficiency (FAIE) during urbanization. Significant academic attention has focused on the main factors that affect urban fixed-asset investment efficiency. However, it remains unclear what the main factors affecting urban fixed-asset investment efficiency are and how they influence it. First, we use the Group Method of Data Handling (GMDH) to automatically identify the main drivers influencing urban FAIE in western China. Then, we utilize the Nadaraya–Watson estimator of a non-parametric regression model to empirically test the nonlinear relationships between these drivers and urban FAIE. Finally, we construct a dynamic panel data model to explore the magnitude of their impact on urban FAIE. We find that the drivers influencing urban FAIE include the economic development level, urbanization investment, financial industry development, urbanization level, and education level. Urban FAIE is positively correlated with the economic development level and negatively correlated with urbanization investment. The relationship between urban FAIE and financial industry development shows a fluctuating pattern. Urban FAIE and the urbanization level have a U-shaped relationship. Urban FAIE and the education level do not appear to have a significant mutual relationship. The drivers have a significant positive impact on urban FAIE. Except for urban fixed-asset investment, economic development, financial industry development, education level, and urbanization level significantly promote urban FAIE. The education level and urbanization level interact with each other, and this interaction has a significant positive impact on urban investment efficiency.
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 Drivers of urban fixed assets investment efficiency across western China [PDF file] [Filesize: 798.91 KB]
 10.7441/joc.2025.04.05
Li, Y., Luo, C., Li, C., Zhang, W., & Yue, M. (2025). Drivers of urban fixed assets investment efficiency across western China. Journal of Competitiveness, 17(4), 123-147. https://doi.org/10.7441/joc.2025.04.05
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