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Fierce competition among county‐level governments has substantially increased disparities in public service provision and housing markets across urban China. The role of the changing intracity administrative structure deserves scholarly, attention in this process. Building on an interdisciplinary literature of public choice and cadre promotion theory, we propose that interjurisdictional competition enlarges the intracity fiscal disparity under China's transitional administrative and fiscal systems. Results from fixed‐effect panel data modeling confirm that cities with higher level of interjurisdictional competition are associated with higher intracity fiscal disparity. This study demonstrates how transition and decentralization of the centralized fiscal system have long‐term, intended and unintended, impacts on fiscal inequality and urban stratification. With continuous urban sprawl, jurisdictional annexation, and large‐scale urban‐to‐rural migration, our study suggests that policies attempting to equalize public service distribution within cities need to consider the administrative structure at the local and regional levels.

Municipal annexation has been one of the most widely adopted instruments for urban growth in the United States. Scholars of public choice and regional studies have long debated the fiscal effect of local government annexation. Few studies, however, examine the fiscal effect of municipal administrative annexations in China, where prefectural cities have extensively annexed county-level governments through forcefully converting rural counties into urban districts in a top-down manner. Employing a difference-in-differences (DID) method coupled with an event study approach, we analyzed a panel data set of 282 prefectural cities from 2007 to 2015 to examine the fiscal impact of annexation in China. The findings show that prefectural cities have significantly increased their land conveyance fees through administrative annexation. Given that land conveyance fees serve as one of the most important own-source revenues at the local level, our findings shed light on the crucial link among the urbanization process, government reorganization, and local land finance in China and, potentially, in other transition countries.

PurposeSo as to understand the effects of network resources on firm innovation and performance within alliances and networks, this paper aims to examine the correlation between network resources and innovation performance through the mediation of capability accumulation and relative bargaining power.Design/methodology/approachDrawing on a survey of 208 Chinese firms engaged in global production networks, this paper extracts four sets of hierarchical regressions to test the impact of network resources on innovation performance.FindingsResults show that network resources are an important source of competitive advantage and the distinction between accessed resources and embedded resources is critical. Other than through direct influences, innovation performance was partly achieved through the mediating role of technological capability and relative bargaining power.Research limitations/implicationsBuilding upon the data introduced in this paper, future studies may examine the effects of network resources in different contexts and the interaction between external and internal resources.Practical implicationsFor firms competing within and between various networks, the forming and utilizing of network resources become a new source of competitive advantage. Hence, careful planning and a consideration of network resources should be undertaken to achieve improvements to a firm's performance.Originality/valueFirst, this paper adds value to the network resource construct by distinguishing two different dimensions. Second, by integrating the mediating effects of technological capabilities and relative bargaining power, this paper reveals the mechanism by which network resources impact innovation performance within various network structures.

The level of public service accessibility differs by residential locations. Existing literature has documented the effects of public service accessibility on housing prices. However, few studies have examined how public service provision affects housing prices under the Chinese centralized governance system. Using data from different geographic scales, this study uses a multilevel research design to examine how public service provision is associated with housing prices in Shanghai. Results show that though the total expenditure at the urban district level is not related to housing prices, government redistributive expenditure is positively associated with housing price and the developmental expenditure is on the opposite. The expenditure effects are further mediated by the accessibility to public facilities at the community level. The findings suggest that, as public service accessibility has been capitalized into housing prices, the decentralized fiscal system with relatively centralized governance structure may have reinforced urban polarization in Shanghai.