Urban Competitiveness Measurement of Chinese Cities Based on a Structural Equation Model

In the current era, competition among countries and regions is in fact among cities. Thus, how to measure urban competitiveness precisely is a basic and important question. The two main approaches to this are comprehensive evaluation based on a set of indicators and network analysis based on inter-city relations. However, both have shortcomings. In this study, we introduced structural equation model (SEM) into urban competitiveness measurement to integrate the two approaches. We built a partial least squares structural equation model (PLS-SEM) according to the analysis of causal relationship among urban attribute indicators -> urban functions -> urban competitiveness -> urban flow intensities. Following the processes of algorithm selection, model building, fitting and assessment, and modification in PLS-SEM modeling, we measured the urban competitiveness of Chinese cities in 2010 and analyzed its distribution quantitatively and spatially. The results revealed relationships between factors contained in the model and urban competitiveness and proved that the PLS-SEM urban competitiveness measurement approach we proposed is theoretically reliable and statistically valid.