IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v10y2021i6p635-d575004.html
   My bibliography  Save this article

Does Financial Excess Support Land Urbanization—An Empirical Study of Cities in China

Author

Listed:
  • Zhenghui Li

    (Guangzhou Institute of International Finance, Guangzhou University, Guangzhou 510006, China)

  • Fanqi Zou

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

  • Yong Tan

    (Department of Accounting, Finance and Economics, Huddersfield Business School, University of Huddersfield, Huddersfield, Queensgate HD1 3DH, UK)

  • Jinhui Zhu

    (School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China)

Abstract

Most countries have experienced land urbanization, which is indispensable for financial support, especially for their financing function achievement through land appreciation and other channels in the urbanization process. By using 34 provincial capital (sub-provinces) cities in China as the sample, this paper studies the impact of finance on land urbanization construction based on the panel data from 2003 to 2018 under a differential GMM method; besides, the causes of excessive financial support and results generated on different regions are reported. Moreover, a moderate range of financial support for land urbanization is found under the influence of land finance. We obtain the following results: first, there is excessive financial support for land urbanization with regional differences exhibited; for instance, the eastern and central regions have an excessive financial support but the western region does not. Second, land urbanization with an excessive financial support correlates with financial efficiency, while the relatively large financial efficiency leads to the waste of a large number of financial resources. Third, financial support has a single and significant threshold effect on land urbanization construction, and finance has a promoting effect when land finance is less than the threshold value; otherwise, it has an inhibiting effect.

Suggested Citation

  • Zhenghui Li & Fanqi Zou & Yong Tan & Jinhui Zhu, 2021. "Does Financial Excess Support Land Urbanization—An Empirical Study of Cities in China," Land, MDPI, vol. 10(6), pages 1-17, June.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:6:p:635-:d:575004
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/10/6/635/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/10/6/635/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. World Bank & the People’s Republic of China Development Research Center of the State Council, 2014. "Urban China : Toward Efficient, Inclusive, and Sustainable Urbanization," World Bank Publications - Books, The World Bank Group, number 18865, December.
    2. Kwasi Anarfi & Ross A. Hill & Chris Shiel, 2020. "Highlighting the Sustainability Implications of Urbanisation: A Comparative Analysis of Two Urban Areas in Ghana," Land, MDPI, vol. 9(9), pages 1-24, August.
    3. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    4. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2013. "The Economic Performance of European Cities and City Regions: Myths and Realities," European Planning Studies, Taylor & Francis Journals, vol. 21(3), pages 334-354, March.
    5. Deng, Xiangzheng & Huang, Jikun & Rozelle, Scott & Uchida, Emi, 2008. "Growth, population and industrialization, and urban land expansion of China," Journal of Urban Economics, Elsevier, vol. 63(1), pages 96-115, January.
    6. Olivier Chanel & Laurence Delattre & Claude Napoléone, 2014. "Determinants of Local Public Policies for Farmland Preservation and Urban Expansion: A French Illustration," Land Economics, University of Wisconsin Press, vol. 90(3), pages 411-433.
    7. Wang, Qiang & Lin, Jian & Zhou, Kan & Fan, Jie & Kwan, Mei-Po, 2020. "Does urbanization lead to less residential energy consumption? A comparative study of 136 countries," Energy, Elsevier, vol. 202(C).
    8. Fen Li & Cunyi Yang & Zhenghui Li & Pierre Failler, 2021. "Does Geopolitics Have an Impact on Energy Trade? Empirical Research on Emerging Countries," Sustainability, MDPI, vol. 13(9), pages 1-24, May.
    9. Hualin Xie & Zhenhong Zhu & Bohao Wang & Guiying Liu & Qunli Zhai, 2018. "Does the Expansion of Urban Construction Land Promote Regional Economic Growth in China? Evidence from 108 Cities in the Yangtze River Economic Belt," Sustainability, MDPI, vol. 10(11), pages 1-15, November.
    10. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    11. Kemfert, Claudia & Schmalz, Sophie, 2019. "Sustainable Finance: Political Challenges of Development and Implementation of Framework Conditions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 1(3), pages 237-248.
    12. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    13. Tinghui Li & Jiehua Ma & Bin Mo, 2021. "Does the Land Market Have an Impact on Green Total Factor Productivity? A Case Study on China," Land, MDPI, vol. 10(6), pages 1-19, June.
    14. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    15. Tiangui Lv & Li Wang & Xinmin Zhang & Hualin Xie & Hua Lu & Hongyi Li & Wangda Liu & Yanwei Zhang, 2019. "Coupling Coordinated Development and Exploring Its Influencing Factors in Nanchang, China: From the Perspectives of Land Urbanization and Population Urbanization," Land, MDPI, vol. 8(12), pages 1-17, November.
    16. Han Li & Ye Hua Dennis Wei & Zhiji Huang, 2014. "Urban Land Expansion and Spatial Dynamics in Globalizing Shanghai," Sustainability, MDPI, vol. 6(12), pages 1-20, December.
    17. Shu, Cheng & Xie, Hualin & Jiang, Jinfa & Chen, Qianru, 2018. "Is Urban Land Development Driven by Economic Development or Fiscal Revenue Stimuli in China?," Land Use Policy, Elsevier, vol. 77(C), pages 107-115.
    18. JunJie Wu & Monica Fisher & Unai Pascual, 2011. "Urbanization and the Viability of Local Agricultural Economies," Land Economics, University of Wisconsin Press, vol. 87(1), pages 109-125.
    19. Marlow Vesterby & Ralph E. Heimlich, 1991. "Land Use and Demographic Change: Results from Fast-Growth Counties," Land Economics, University of Wisconsin Press, vol. 67(3), pages 279-291.
    20. Yunyang Ji & Xiaoxin Guo & Shihu Zhong & Lina Wu, 2020. "Land Financialization, Uncoordinated Development of Population Urbanization and Land Urbanization, and Economic Growth: Evidence from China," Land, MDPI, vol. 9(12), pages 1-22, November.
    21. Cunyi Yang & Tinghui Li & Khaldoon Albitar, 2021. "Does energy efficiency affect ambient PM2.5? The moderating role of energy investment," Papers 2105.11080, arXiv.org.
    22. Kais, Saidi & Sami, Hammami, 2016. "An econometric study of the impact of economic growth and energy use on carbon emissions: Panel data evidence from fifty eight countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1101-1110.
    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. Shan Huang & Yan Ding & Pierre Failler, 2022. "Does the Government’s Environmental Attention Affect Ambient Pollution? Empirical Research on Chinese Cities," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    2. Tingting Su & Kaiping Wang & Shuangshuang Li & Xinyan Wang & Huan Li & Huanru Ding & Yanfei Chen & Chenhui Liu & Min Liu & Yunlu Zhang, 2022. "Analysis and Optimization of Landscape Preference Characteristics of Rural Public Space Based on Eye-Tracking Technology: The Case of Huangshandian Village, China," Sustainability, MDPI, vol. 15(1), pages 1-25, December.
    3. Kaiming Zhong & Hongyan Fu & Tinghui Li, 2022. "Can the Digital Economy Facilitate Carbon Emissions Decoupling? An Empirical Study Based on Provincial Data in China," IJERPH, MDPI, vol. 19(11), pages 1-25, June.
    4. Xiaoying Ju & Huizhao Li & Peng Yao & Jianxu Liu & Fei Chen & Songsak Sriboonchitta, 2022. "Analysis of the Impact of Industrial Land Price Distortion on Overcapacity in the Textile Industry and Its Sustainability in China," Sustainability, MDPI, vol. 14(8), pages 1-17, April.
    5. Tinghui Li & Jiehua Ma & Bin Mo, 2021. "Does Environmental Policy Affect Green Total Factor Productivity? Quasi-Natural Experiment Based on China’s Air Pollution Control and Prevention Action Plan," IJERPH, MDPI, vol. 18(15), pages 1-23, August.
    6. Shuai Wang & Cunyi Yang & Zhenghui Li, 2021. "Spatio-Temporal Evolution Characteristics and Spatial Interaction Spillover Effects of New-Urbanization and Green Land Utilization Efficiency," Land, MDPI, vol. 10(10), pages 1-26, October.
    7. Shuai Wang & Cunyi Yang & Zhenghui Li, 2022. "Green Total Factor Productivity Growth: Policy-Guided or Market-Driven?," IJERPH, MDPI, vol. 19(17), pages 1-19, August.
    8. Huxiao Zhu & Xiangjun Ou & Zhen Yang & Yiwen Yang & Hongxin Ren & Le Tang, 2022. "Spatiotemporal Dynamics and Driving Forces of Land Urbanization in the Yangtze River Delta Urban Agglomeration," Land, MDPI, vol. 11(8), pages 1-21, August.
    9. Yan Ding & Yue Liu & Pierre Failler, 2022. "The Impact of Uncertainties on Crude Oil Prices: Based on a Quantile-on-Quantile Method," Energies, MDPI, vol. 15(10), pages 1-35, May.
    10. Yanling Li & Mengxin Wang & Gaoke Liao & Junxia Wang, 2022. "Spatial Spillover Effect and Threshold Effect of Digital Financial Inclusion on Farmers’ Income Growth—Based on Provincial Data of China," Sustainability, MDPI, vol. 14(3), pages 1-16, February.
    11. Sa Xu & Cunyi Yang & Zhehao Huang & Pierre Failler, 2022. "Interaction between Digital Economy and Environmental Pollution: New Evidence from a Spatial Perspective," IJERPH, MDPI, vol. 19(9), pages 1-23, April.
    12. Haihua Liu & Peng Wang & Zejun Li, 2021. "Is There Any Difference in the Impact of Digital Transformation on the Quantity and Efficiency of Enterprise Technological Innovation? Taking China’s Agricultural Listed Companies as an Example," Sustainability, MDPI, vol. 13(23), pages 1-19, November.
    13. Yue Liu & Pierre Failler & Zhiying Liu, 2022. "Impact of Environmental Regulations on Energy Efficiency: A Case Study of China’s Air Pollution Prevention and Control Action Plan," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    14. David W. H. Wong & Harry F. Lee & Simon X. B. Zhao & Andy C. L. Tai, 2022. "Post-2008 Fiscal Stimulus Packages and the Driving Forces for China’s Urbanization," Land, MDPI, vol. 11(12), pages 1-16, December.

    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. Baharumshah, Ahmad Zubaidi & Slesman, Ly & Wohar, Mark E., 2016. "Inflation, inflation uncertainty, and economic growth in emerging and developing countries: Panel data evidence," Economic Systems, Elsevier, vol. 40(4), pages 638-657.
    2. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    3. Carmela D'Avino, 2015. "Net Interoffice Accounts of Global Banks: The Role of Domestic Funding," IJFS, MDPI, vol. 3(3), pages 1-17, June.
    4. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    5. Liobikienė, Genovaitė & Butkus, Mindaugas, 2017. "Environmental Kuznets Curve of greenhouse gas emissions including technological progress and substitution effects," Energy, Elsevier, vol. 135(C), pages 237-248.
    6. Thanh Quang Phung & Ehsan Rasoulinezhad & Hang Luong Thi Thu, 2023. "How are FDI and green recovery related in Southeast Asian economies?," Economic Change and Restructuring, Springer, vol. 56(6), pages 3735-3755, December.
    7. Junbai Pan & Kun Lv & Shurong Yu & Dian Fu, 2022. "What Mechanisms Do Financial Marketization and China’s Fiscal Decentralization Have on Regional Energy Intensity? Evidence Based on Spatial Spillover and Panel Threshold Effects Perspectives," IJERPH, MDPI, vol. 19(9), pages 1-27, May.
    8. Khan, Muhammad Atif & Gu, Lulu & Khan, Muhammad Asif & Oláh, Judit, 2020. "Natural resources and financial development: The role of institutional quality," Journal of Multinational Financial Management, Elsevier, vol. 56(C).
    9. Petra Sauer & Martin Zagler, 2014. "(In)equality in Education and Economic Development," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S2), pages 353-379, November.
    10. Vinayagathasan, Thanabalasingam, 2013. "Inflation and economic growth: A dynamic panel threshold analysis for Asian economies," Journal of Asian Economics, Elsevier, vol. 26(C), pages 31-41.
    11. Richard P.C. Brown & Fabrizio Carmignani, 2015. "Revisiting the Effects of Remittances on Bank Credit: A Macro Perspective," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(5), pages 454-485, November.
    12. Ines TROJETTE, 2016. "The Effect Of Foreign Direct Investment On Economic Growth: The Institutional Threshold," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 43, pages 111-138.
    13. Diallo, Ibrahima Amadou, 2010. "Analyzing the link between real exchange rate and productivity," MPRA Paper 29548, University Library of Munich, Germany.
    14. Hyytinen, Ari & Toivanen, Otto, 2004. "Monitoring and market power in credit markets," International Journal of Industrial Organization, Elsevier, vol. 22(2), pages 269-288, February.
    15. Tamoya Christie, 2014. "The Effect Of Government Spending On Economic Growth: Testing The Non-Linear Hypothesis," Bulletin of Economic Research, Wiley Blackwell, vol. 66(2), pages 183-204, April.
    16. Jude Eggoh & Chrysost Bangaké, 2021. "Remittances and Financial Inclusion: Does Financial Development Matter?," Economics Bulletin, AccessEcon, vol. 41(2), pages 374-386.
    17. Dombi, Ákos & Grigoriadis, Theocharis, 2020. "State history and the finance-growth nexus: Evidence from transition economies," Economic Systems, Elsevier, vol. 44(1).
    18. Yong Ma & Ke Song, 2018. "Financial Development And Macroeconomic Volatility," Bulletin of Economic Research, Wiley Blackwell, vol. 70(3), pages 205-225, July.
    19. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    20. Seo, Myung Hwan & Shin, Yongcheol, 2016. "Dynamic panels with threshold effect and endogeneity," Journal of Econometrics, Elsevier, vol. 195(2), pages 169-186.

    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:gam:jlands:v:10:y:2021:i:6:p:635-:d:575004. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.