Land allocation and industrial agglomeration: Evidence from the 2007 reform in China

• 成果类型: Article
• 署名作者: Tian, Wenjia; Wang, Zhi; Zhang, Qinghua
• 署名单位: Central University of Finance & Economics; Shanghai Institute of International Finance & Economics; Fudan University; Peking University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2024.103351
• 发表日期: 2024
• 关键词: Land allocation mechanism; TRANSPARENCY; Industrial agglomeration; Spatial distribution of new entrants; CHINA

摘要

This paper highlights the crucial role of land allocation mechanisms in fostering industrial agglomeration by examining China's 2007 industrial land market reform. By introducing transparency into the land-selling process, the reform facilitated more buyers to compete for land (as evidenced by increased land sale prices), enabling local governments to allocate land to the most suitable users. Utilizing comprehensive data sets that include information on initial local industrial structure, new industrial establishments, and industrial land transactions, the empirical analysis finds that the reform significantly increased the entry of firms from industries aligned with local specialization, particularly in regions that implemented the reform more strictly. Industries characterized by substantial unrealized agglomeration economies or highly localized spillover effects experienced amplified effects. A well-functioning capital market further enhanced the land market reform's impact. Supporting evidence demonstrates the reform's positive effect on economic growth (as evidenced by changes in nighttime luminosity), potentially through increasing local firms' TFP.