The Impact of Metropolitan Area Integration Policies on Urban Industrial Structure Upgrading: Evidence from China

As global production networks become increasingly regionalized, diversified, and resilience-oriented, metropolitan areas (MAs) have emerged as important spatial platforms for industrial development. This study examines whether China’s national-level metropolitan area integration policies promote urban industrial structure upgrading and, if so, through which channels. We first develop a set of conceptual mechanisms and hypotheses, and then test them using panel data for 281 prefecture-level cities in China from 2012 to 2022. A staggered difference-in-differences (DID) model, complemented by a series of robustness checks, is employed to identify the policy effects. The baseline estimates indicate that the industrial structure of MA member cities is, on average, about 2.43 percentage points more advanced than that of non-MA cities. Mechanism analysis shows that the policies foster urban industrial upgrading through unified market formation, technological improvement, and optimization of factor endowments. However, the policies have only a very limited impact on breakthroughs in cutting-edge or frontier technologies. Based on these findings, we propose targeted policy recommendations to address the identified shortcomings.