IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v52y2021i1p310-331.html
   My bibliography  Save this article

The impact of land finance on urban land use efficiency: A panel threshold model for Chinese provinces

Author

Listed:
  • Peng Wang
  • Zinan Shao
  • Jian Wang
  • Qun Wu

Abstract

The improvement of urban land use efficiency has become the main goal for developing countries in response to rapid urbanization. This paper explores the impact of land finance on urban land use efficiency (ULUE) on the provincial level using land conveyance fee and land‐related tax data from China between 2004 and 2016. First, a super‐efficiency data envelopment analysis model was applied to measure ULUE. The results showed that ULUE was highest in eastern China, followed by central China, and ULUE was lowest in western China. Then, a provincial panel threshold model was built for an empirical analysis. In particular, a double threshold was identified in the relationship between the land conveyance fee and ULUE. A significant positive effect on ULUE was found when the percentage of the new construction land supply quantity remained below 0.401. However, this effect became negative when the percentage of threshold variables exceeded 0.842. Moreover, land‐related tax was found to exert significant negative effects on ULUE when the percentage of the new construction land supply quantity remained below 0.842. Insignificant positive effects were found when the percentage exceeded this level. The empirical results suggested that the relationship between land finance and ULUE is nonlinear; excessive land finance will negatively impact ULUE.

Suggested Citation

  • Peng Wang & Zinan Shao & Jian Wang & Qun Wu, 2021. "The impact of land finance on urban land use efficiency: A panel threshold model for Chinese provinces," Growth and Change, Wiley Blackwell, vol. 52(1), pages 310-331, March.
    • Handle: RePEc:bla:growch:v:52:y:2021:i:1:p:310-331
    DOI: 10.1111/grow.12464
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/grow.12464
    Download Restriction: no
    File URL: https://libkey.io/10.1111/grow.12464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gianni Guastella & Stefano Pareglio & Paolo Sckokai, 2017. "A Spatial Econometric Analysis of Land Use Efficiency in Large and Small Municipalities," Working Papers 2017.03, Fondazione Eni Enrico Mattei.
    2. Tian, Li & Liang, Yinlong & Zhang, Bo, 2017. "Measuring residential and industrial land use mix in the peri-urban areas of China," Land Use Policy, Elsevier, vol. 69(C), pages 427-438.
    3. Zhu, Xinhua & Li, Yan & Zhang, Peifeng & Wei, Yigang & Zheng, Xuyang & Xie, Lingling, 2019. "Temporal–spatial characteristics of urban land use efficiency of China’s 35mega cities based on DEA: Decomposing technology and scale efficiency," Land Use Policy, Elsevier, vol. 88(C).
    4. Peter L. Rousseau & Paul Wachtel, 2011. "What Is Happening To The Impact Of Financial Deepening On Economic Growth?," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 276-288, January.
    5. Vanessa Miriam Carlow, 2014. "Limits—Urban Density and Mobility Networks in West Berlin during the Period of Containment," Sustainability, MDPI, vol. 6(10), pages 1-14, October.
    6. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    7. Xu, Nannan, 2019. "What gave rise to China’s land finance?," Land Use Policy, Elsevier, vol. 87(C).
    8. Banzhaf, H. Spencer & Lavery, Nathan, 2010. "Can the land tax help curb urban sprawl? Evidence from growth patterns in Pennsylvania," Journal of Urban Economics, Elsevier, vol. 67(2), pages 169-179, March.
    9. Gluszak, Michal & Zygmunt, Robert, 2018. "Development density, administrative decisions, and land values: An empirical investigation," Land Use Policy, Elsevier, vol. 70(C), pages 153-161.
    10. Xie, Hualin & Chen, Qianru & Wang, Wei & He, Yafen, 2018. "Analyzing the green efficiency of arable land use in China," Technological Forecasting and Social Change, Elsevier, vol. 133(C), pages 15-28.
    11. Mathur, Shishir & Smith, Adam, 2013. "Land value capture to fund public transportation infrastructure: Examination of joint development projects' revenue yield and stability," Transport Policy, Elsevier, vol. 30(C), pages 327-335.
    12. Gao, Xin & Zhang, Anlu & Sun, Zhanli, 2020. "How regional economic integration influence on urban land use efficiency？ A case study of Wuhan metropolitan area, China," Land Use Policy, Elsevier, vol. 90(C).
    13. Karen C. Seto & Robert K. Kaufmann, 2003. "Modeling the Drivers of Urban Land Use Change in the Pearl River Delta, China: Integrating Remote Sensing with Socioeconomic Data," Land Economics, University of Wisconsin Press, vol. 79(1), pages 106-121.
    14. Thomas Gries & Rainer Grundmann, 2018. "Fertility and Modernization: The Role of Urbanization in Developing Countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(3), pages 493-506, April.
    15. Foldvary, Fred Emanuel & Minola, Luca Andrea, 2017. "The taxation of land value as the means towards optimal urban development and the extirpation of excessive economic inequality," Land Use Policy, Elsevier, vol. 69(C), pages 331-337.
    16. Lin, Yatang & Qin, Yu & Yang, Yang & Zhu, Hongjia, 2020. "Can price regulation increase land-use intensity? Evidence from China's industrial land market," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    17. Huang, Zhonghua & Du, Xuejun, 2018. "Holding the market under the stimulus plan: Local government financing vehicles' land purchasing behavior in China," China Economic Review, Elsevier, vol. 50(C), pages 85-100.
    18. Pan, Jiun-Nan & Huang, Jr-Tsung & Chiang, Tsun-Feng, 2015. "Empirical study of the local government deficit, land finance and real estate markets in China," China Economic Review, Elsevier, vol. 32(C), pages 57-67.
    19. Liu, Yong & Fan, Peilei & Yue, Wenze & Song, Yan, 2018. "Impacts of land finance on urban sprawl in China: The case of Chongqing," Land Use Policy, Elsevier, vol. 72(C), pages 420-432.
    20. Kamimura, A & Guerra, S.M.G & Sauer, I.L, 2004. "Looking for non-linear relation evidences between Brazilian gross domestic product (GDP) and fixed capital stock (K)," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 332(C), pages 461-468.
    21. Zhong, Taiyang & Zhang, Xiaoling & Huang, Xianjin & Liu, Fang, 2019. "Blessing or curse? Impact of land finance on rural public infrastructure development," Land Use Policy, Elsevier, vol. 85(C), pages 130-141.
    22. Wang, Jian & Wu, Qun & Yan, Siqi & Guo, Guancheng & Peng, Shangui, 2020. "China’s local governments breaking the land use planning quota: A strategic interaction perspective," Land Use Policy, Elsevier, vol. 92(C).
    23. Yu, Junqing & Zhou, Kaile & Yang, Shanlin, 2019. "Land use efficiency and influencing factors of urban agglomerations in China," Land Use Policy, Elsevier, vol. 88(C).
    24. Du, Jinfeng & Peiser, Richard B., 2014. "Land supply, pricing and local governments' land hoarding in China," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 180-189.
    25. Elizabeth C. Delmelle & Yuhong Zhou & Jean-Claude Thill, 2014. "Densification without Growth Management? Evidence from Local Land Development and Housing Trends in Charlotte, North Carolina, USA," Sustainability, MDPI, vol. 6(6), pages 1-16, June.
    26. Mo, Jiawei, 2018. "Land financing and economic growth: Evidence from Chinese counties," China Economic Review, Elsevier, vol. 50(C), pages 218-239.
    27. Turnbull, Geoffrey K., 2010. "Irreversible development and eminent domain: Compensation rules, land use and efficiency," Journal of Housing Economics, Elsevier, vol. 19(4), pages 243-254, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Di Zhu & Yinghong Wang & Shangui Peng & Fenglin Zhang, 2022. "Influence Mechanism of Polycentric Spatial Structure on Urban Land Use Efficiency: A Moderated Mediation Model," IJERPH, MDPI, vol. 19(24), pages 1-18, December.
    2. Minquan Liu & Yuming Cui, 2023. "Land Financing-Led Urbanization in China: Evolution, Scale and Lessons," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(6), pages 1-54, June.
    3. Gyourko, Joseph & Shen, Yang & Wu, Jing & Zhang, Rongjie, 2022. "Land finance in China: Analysis and review," China Economic Review, Elsevier, vol. 76(C).
    4. Aiping Wang & Weifen Lin & Bei Liu & Hui Wang & Hong Xu, 2021. "Does Smart City Construction Improve the Green Utilization Efficiency of Urban Land?," Land, MDPI, vol. 10(6), pages 1-18, June.
    5. Cheng Peng & Lu Zhao & Liwen Liu & Jia Chen, 2023. "The Influence of Environmental Protection Tax Law on Urban Land Green Use Efficiency in China: The Nonlinear Moderating Effect of Tax Rate Increase," Sustainability, MDPI, vol. 15(16), pages 1-18, August.
    6. Xinhai Lu & Mingxu Bai & Bing Kuang & Danling Chen, 2021. "Unlocking the Relationship between Land Finance and Regional Integration," Land, MDPI, vol. 10(9), pages 1-17, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gyourko, Joseph & Shen, Yang & Wu, Jing & Zhang, Rongjie, 2022. "Land finance in China: Analysis and review," China Economic Review, Elsevier, vol. 76(C).
    2. Wang, Di & Ren, Cairu & Zhou, Tao, 2021. "Understanding the impact of land finance on industrial structure change in China: Insights from a spatial econometric analysis," Land Use Policy, Elsevier, vol. 103(C).
    3. Xiaotong Li & Ying Li & Jinlan Ni & Jia Yuan, 2022. "Master development, land appreciation, and government finance: Evidence from the Disney project in Shanghai," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 1027-1046, August.
    4. Mengchao Yao & Yihua Zhang, 2021. "Evaluation and Optimization of Urban Land-Use Efficiency: A Case Study in Sichuan Province of China," Sustainability, MDPI, vol. 13(4), pages 1-22, February.
    5. Ke Zhao & Danling Chen & Xupeng Zhang & Xiaojie Zhang, 2022. "How Do Urban Land Expansion, Land Finance, and Economic Growth Interact?," IJERPH, MDPI, vol. 19(9), pages 1-15, April.
    6. Chengzhen Song & Qingfang Liu & Jinping Song & Zhengyun Jiang & Zhilin Lu & Yueying Chen, 2022. "Land Use Efficiency in the Yellow River Basin in the Background of China’s Economic Transformation: Spatial-Temporal Characteristics and Influencing Factors," Land, MDPI, vol. 11(12), pages 1-22, December.
    7. Han Chen & Chunyu Meng & Qilin Cao, 2022. "Measurement and Influencing Factors of Low Carbon Urban Land Use Efficiency—Based on Non-Radial Directional Distance Function," Land, MDPI, vol. 11(7), pages 1-16, July.
    8. Aiping Wang & Weifen Lin & Bei Liu & Hui Wang & Hong Xu, 2021. "Does Smart City Construction Improve the Green Utilization Efficiency of Urban Land?," Land, MDPI, vol. 10(6), pages 1-18, June.
    9. Zhang, Bangbang & Li, Jiaxiang & Tian, Wenmiao & Chen, Haibin & Kong, Xiangbin & Chen, Wei & Zhao, Minjuan & Xia, Xianli, 2020. "Spatio-temporal variances and risk evaluation of land finance in China at the provincial level from 1998 to 2017," Land Use Policy, Elsevier, vol. 99(C).
    10. Yue Zhou & Yi Chen & Yi Hu, 2021. "Assessing Efficiency of Urban Land Utilisation under Environmental Constraints in Yangtze River Delta, China," IJERPH, MDPI, vol. 18(23), pages 1-18, November.
    11. Di Zhu & Yinghong Wang & Shangui Peng & Fenglin Zhang, 2022. "Influence Mechanism of Polycentric Spatial Structure on Urban Land Use Efficiency: A Moderated Mediation Model," IJERPH, MDPI, vol. 19(24), pages 1-18, December.
    12. De Zhou & Ruilin Tian & Zhulu Lin & Liming Liu & Junfeng Wang & Shijia Feng, 2022. "Spatial-Temporal Evolution and Risk Assessment of Land Finance: Evidence from China," Risks, MDPI, vol. 10(10), pages 1-27, October.
    13. Lisha Pan & Hangang Hu & Xin Jing & Yang Chen & Guan Li & Zhongguo Xu & Yuefei Zhuo & Xueqi Wang, 2022. "The Impacts of Regional Cooperation on Urban Land-Use Efficiency: Evidence from the Yangtze River Delta, China," Land, MDPI, vol. 11(6), pages 1-16, June.
    14. Yin Ma & Minrui Zheng & Xinqi Zheng & Yi Huang & Feng Xu & Xiaoli Wang & Jiantao Liu & Yongqiang Lv & Wenchao Liu, 2023. "Land Use Efficiency Assessment under Sustainable Development Goals: A Systematic Review," Land, MDPI, vol. 12(4), pages 1-21, April.
    15. Xinhai Lu & Zhenxing Shi & Jia Li & Junhao Dong & Mingjie Song & Jiao Hou, 2022. "Research on the Impact of Factor Flow on Urban Land Use Efficiency from the Perspective of Urbanization," Land, MDPI, vol. 11(3), pages 1-17, March.
    16. Xupeng Zhang & Danling Chen & Xinhai Lu & Yifeng Tang & Bin Jiang, 2021. "Interaction between Land Financing Strategy and the Implementation Deviation of Local Governments’ Cultivated Land Protection Policy in China," Land, MDPI, vol. 10(8), pages 1-16, July.
    17. Xinhai Lu & Yifeng Tang & Shangan Ke, 2021. "Does the Construction and Operation of High-Speed Rail Improve Urban Land Use Efficiency? Evidence from China," Land, MDPI, vol. 10(3), pages 1-15, March.
    18. Rongtian Zhang & Jianfei Lu, 2022. "Spatial–Temporal Pattern and Convergence Characteristics of Provincial Urban Land Use Efficiency under Environmental Constraints in China," IJERPH, MDPI, vol. 19(17), pages 1-15, August.
    19. Siyu Han & Mengcheng Wang & Qi Liu & Renyang Wang & Guoliang Ou & Lu Zhang, 2022. "The Influence of Land Disposition Derived from Land Finance on Urban Innovation in China: Mechanism Discussion and Empirical Evidence," IJERPH, MDPI, vol. 19(6), pages 1-23, March.
    20. Mengkai Chen & Ting Chen & Debao Ruan & Xiaowei Wang, 2023. "Land Finance, Real Estate Market, and Local Government Debt Risk: Evidence from China," Land, MDPI, vol. 12(8), pages 1-18, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:52:y:2021:i:1:p:310-331. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.