Industrial Land Concessions,Factor Mobility and Inter-regional Output Imbalance:A Perspective of Inter-regional Land Competition in China
This study examines the critical role of land policy in regional economic development disparities in China,with a particular focus on local governments'industrial land concession strategies and their impact on inter-regional de-velopment disparities.By constructing an optimal choice model for local governments,this research reveals how differen-tiated land concession strategies adopted by local governments in regions with varying endowments exacerbate economic development disparities in the context of capital mobility.The study challenges the prevailing assumption in traditional literature that all local governments engage in exces-sive industrial land concessions.It introduces a heterogeneity dimension into the analytical framework,uncovering a more nuanced reality.The research finds that as resource endowment disparities widen,developed regions tend to expand the supply of industrial land,while less developed regions are inclined to reduce it.This strategic divergence not only di-rectly affects regional output but also amplifies inter-regional disparities by widening differences in marginal returns on capital and intensifying capital flow.Methodologically,the study proposes an optimal choice model for local governments based on the research frame-work established by Cai & Treisman(2005).The model incorporates land as a factor in the production function and por-trays inter-regional heterogeneity by considering differences in resource endowments.Local governments,in maximizing their utility,must balance the expansion of industrial land for increasing tax revenue and land concession income against maintaining their own consumption,considering the opportunity cost of industrial land concessions.The research findings remain consistent regardless of whether local governments choose to regulate land manage-ment through quantity control,price control,or proportion control.This consistency underscores the robustness of the study's conclusions across various policy scenarios.Furthermore,this study evaluates the effectiveness of the central government land policy reforms in reducing re-gional disparities.It analyzes two key measures:restricting construction land indicators in developed regions and allow-ing cross-regional trading of land indicators.The results indicate that while the policy of restricting construction land indi-cators in developed regions can mitigate regional development disparities to some extent,it also incurs efficiency losses.Notably,the cross-regional land indicator trading policy is demonstrated to be a more effective mechanism,as it not only reduces regional disparities but also alleviates efficiency losses and improves welfare across all regions.The main contributions of this paper are threefold.(1)It introduces a regional heterogeneity perspective,revealing the differentiation in local governments'land concession strategies and their impact on regional development disparities.(2)It provides a theoretical framework for understanding the evolution of the central government land policies and their effects on regional economic development disparities.(3)Based on the research findings,it proposes policy recommenda-tions to promote balanced regional development,including implementing differentiated land policies and strengthening cross-regional cooperation.The insights provided by this study help decipher the varying performances of different local governments in indus-trial land concessions.This research offers a new perspective for understanding inter-regional development disparities in China,highlighting the core role of land policy in regional economic development,and provides a theoretical foundation for formulating more effective policies for balanced regional development.The study indicates that the central govern-ment plays a crucial role in mitigating regional development disparities,as local governments'actions are constrained by their optimization processes and inherent endowment differences.The policy implications of this study emphasize the necessity of formulating comprehensive,multi-faceted regional development strategies.This includes implementing differentiated land policies tailored to the specific characteristics of each region,promoting cross-regional government cooperation and economic collaboration,and providing more compre-hensive policy support by the central government to less developed regions.In conclusion,this study not only deepens the academic understanding of the relationship between land policy and re-gional economic disparities but also provides valuable insights for policymakers.By elucidating the complex interplay be-tween local government strategies,land policies,and regional development,it offers new perspectives and important im-plications for balanced regional development in China.
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