Analysis of the Government’s Decision on Leasing Different Lands under Public Ownership of Land

Abstract

Using the multinomial logit model, this paper investigates the factors influencing the government’s decision to lease different types of land in Shenzhen, China, including residential, industrial, commercial, and public service land. The aspects of the land attributes, economy and government at the district level, and land accessibility are considered as the influencing factors. Regarding the factors as the variables, the influencing factors supporting the district government decision to lease different types of land and the probability that a type of land will be consider to be leased by the government are investigated via the multinomial logit model. Using data of factors from 2005 to 2021 in Shenzhen, China, the results of the model can be obtained. After discussing and analyzing the results, it is shown that the land attribute, land accessibility, and economy and polity at the district level affect government decisions on leasing land; furthermore, industrial land is more likely to be leased by the district government than other types of land. Lastly, implications and suggestions for the district government are discussed.