Navigating ecological constraints in governance: The transformation of regional division as a pathway to county economic development

This study treats the designation of national key ecological function areas (NKEFA) as a quasi-natural experiment, we examine the impact of NKEFA policy on regional economic performance. The main findings are as follows: Firstly, the economic development index demonstrates a sustained upward trend over the study period, with higher levels concentrated in southeastern coastal regions as well as parts of western Inner Mongolia and Gansu. Secondly, the establishment of NKEFA significantly promotes county economic development, raising the economic development index by an average of 2.86% compared to the control group. This positive effect strengthens over time with continued policy implementation. Thirdly, this location-oriented policy primarily promotes county-level economic development by fostering technological innovation, stimulating entrepreneurial vitality, and enhancing industrial structure. It demonstrates more pronounced effects in counties located in eastern China and those with lower urbanization rates. Additionally, the policy exhibits a spatial influence on the economic development indices of neighboring counties.