Does Land Finance Contraction Accelerate Urban Shrinkage? A Study Based on 84 Key Cities in China

Wang, Zhifeng; Cao, Changyun; Wang, Hao

doi:10.1061/(asce)up.1943-5444.0000613

Cited by 24 publications

(16 citation statements)

References 19 publications

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“…A literature review reveals that scholars' research on industrial land allocation focuses on land finance and land attracting investment behavior (Borras et al., 2019; Huang & Chan, 2018; Wang et al., 2020; Xu, 2019), government intervention and economic growth (Meshkini et al., 2019; Su & Qian, 2020), and land market allocation (Lu et al., 2020; Nakamura, 2019), and academics believe that the transfer of industrial land will increase fiscal revenue. In terms of the effect of industrial land allocation, its impact on employment remains untested empirically.…”

Section: Literature Reviewmentioning

confidence: 99%

Two‐stage development, allocation strategies' effect, and industrial land policies' adjustment, China

Zhang

Han

et al. 2022

Growth and Change

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Local governments are faced with ‘financial’ and ‘political’ double‐pressure to attract business investment with the low‐price industrial land in China. This study tests the effect of industrial land allocation strategy on local tax and employment using the Driscoll‐Kraay (D‐K) standard error fixed‐effect model in different stages. The empirical results indicate that the taxation and employment‐pulling effects are still effective in the full‐sample model. However, in the stage of rapid economic development (2007–2012), the interaction term coefficient between industrial land scale and price is –0.026 and is significant at 5% level. This result suggests that the low‐price and large‐scale industrial land allocation strategies of local governments have a significant impact on the tax. For every 1% decrease in industrial land price, the regional employment growth is 0.071%. In the structure transformation stage (2013–2019), the industrial land scale can influence increasing local taxation. The effectiveness of local government industrial land allocation strategy on regional employment is weakened.

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Section: Literature Reviewmentioning

confidence: 99%

Two‐stage development, allocation strategies' effect, and industrial land policies' adjustment, China

Zhang

Han

et al. 2022

Growth and Change

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“…On the one hand, farmer's poverty caused by the unfair distribution of land expropriation benefits will have a greater influence on regional segmentation. On the other hand, the dependence on land finance has aggravated the imbalance of rent-seeking and wealth distribution [38]. Moreover, in terms of efficiency of revenue-generating, the efficiency of reliance on land finance in the developed areas is higher than that in the less developed areas.…”

Section: Reliance On Land Finance Affecting Regional Integrationmentioning

confidence: 99%

Unlocking the Relationship between Land Finance and Regional Integration

Bai

Kuang

et al. 2021

Land

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Exploring the relationship between land finance and regional integration is of great significance for optimizing the land management system and promoting high-quality development. Previous studies focused on the impact of land finance on regional development, and rarely concerned the role of regional integration on land revenue. This study reveals the internal association mechanisms between land finance and regional integration, which might provide an integrated theoretical and empirical support for the coordinated development between urban land market and regional economy. We firstly provide a theoretically analytical framework for the relationship between the size of land finance, reliance on land finance, and regional integration, and three hypotheses are proposed. On this basis, an econometric analysis is conducted based on the panel data of the urban agglomerations in the middle reaches of the Yangtze River (UAMRYR) from 2003 to 2016. The results show that an increased amount of land finance revenue promotes the level of regional integration. Specifically, for every 1% increase in the size of land finance of UAMRYR, Wuhan city-clusters, and Chang-Zhu-Tan city-clusters, the level of regional integration will increase by 0.000040%, 0.000021%, and 0.000089%, respectively. Besides, the degree of land finance dependence has a negative impact on the level of regional integration. The threshold regression analysis indicates an inverted U–shaped curve could reflect the relationship between the level of regional integration and the degree of land financial dependence. This study argues that the governments in a particular urban agglomeration should clarify the net effect of the size of land finance and their reliance on land finance, and rationally introducing development strategy according to the synergy between land finance and regional integration.

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“…7 This impact is most severe in shrinking cities, where contraction of land-based tax revenues may accelerate further population declines. 8 Moving forward, local governments will have reduced financial capacity to support public programs such as the Healthy Cities initiative.…”

Section: Introductionmentioning

confidence: 99%