THE ECONOMIC EFFECTS OF CHINESE LOCAL GOVERNMENTS LAND SUPPLY BEHAVIOR: INVESTMENT EFFECT AND REGIONAL DEVELOPMENT

Lin Zhang ； Jinfang Qian ； Yuan Liu

《IETI Transactions on Social Sciences and Humanities》 11卷 (2020/12) Pp. 16-34

https://doi.org/10.6896/IETITSSH.202012_11.0002

摘要

As the main body of the primary land market, the local government tends to depress the price of industrial land to attract manufacturers to settle given the regional economic development of China in recent years. This trend has resulted in land price distortions and resource mismatch. Whether this resource allocation satisfies the government's desire to stimulate economic development remains a question. Moreover, the impact of this behavior on the long-term development of the regional economy should be studied. This study uses the land prices and economic statistics of 105 cities during the 12 years from 2003 to 2015. An empirical test of the theoretical hypotheses is conducted. Results show that in the short term, low-cost land supply is positively related to capital attraction, can increase local government fiscal revenue. In the long-term, low-cost land is not conducive to regional production specialization and upgrading of the industrial structure, then adversely affect the long-term development potential and prospects of the regional economy.

關鍵字

Industrial land ； Local government ； Price ； Regional economy