IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i6p801-d826636.html
   My bibliography  Save this article

Rethinking the Contribution of Land Element to Urban Economic Growth: Evidence from 30 Provinces in China

Author

Listed:
  • Guoliang Xu

    (School of Tourism and Urban Management, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Xiaonan Yin

    (School of Tourism and Urban Management, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Guangdong Wu

    (School of Public Policy and Administration, Chongqing University, Chongqing 430044, China)

  • Ning Gao

    (Shandong Jianzhu University Design Group Co., Ltd., Jinan 250014, China)

Abstract

In China, disputes regarding the benefits and drawbacks of land finance have been heated, but the role of land in urban economic growth has received insufficient attention, particularly on a macro scale. This research used the Cobb–Douglas production function model to investigate the role of land in urban economic growth. Then, we conducted an empirical test using panel data from 30 provinces from 2000 to 2019, with the goal of revealing the role of land in urban growth and spatio-temporal inequalities in China. Furthermore, to find the spatial steady-state level of land contributions, σ convergence, absolute β convergence, and condition β convergence tests were applied. The results show that: (1) China’s urban economic development was influenced by the combined element of land, capital, and labor; (2) the contribution of land to China’s urban economy experienced a turning point during the “12th Five-Year Plan”; (3) the spatio-temporal convergence of the contribution of land showed convergence in the east but nonconvergence in the central and western regions; and (4) β convergence demonstrated convergence in eastern, central, and western China. Given the complex and turbulent international political and economic context, the Chinese government should think about how to foster continuous energy by supporting land-supply policies that are adapted to local needs.

Suggested Citation

  • Guoliang Xu & Xiaonan Yin & Guangdong Wu & Ning Gao, 2022. "Rethinking the Contribution of Land Element to Urban Economic Growth: Evidence from 30 Provinces in China," Land, MDPI, vol. 11(6), pages 1-16, May.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:6:p:801-:d:826636
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/6/801/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/11/6/801/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Montalbano, Pierluigi & Nenci, Silvia, 2022. "Does global value chain participation and positioning in the agriculture and food sectors affect economic performance? A global assessment," Food Policy, Elsevier, vol. 108(C).
    2. Liu, Chao & Xu, Yueqing & Lu, Xinhai & Han, Jing, 2021. "Trade-offs and driving forces of land use functions in ecologically fragile areas of northern Hebei Province: Spatiotemporal analysis," Land Use Policy, Elsevier, vol. 104(C).
    3. Tomasz Zaborowski, 2021. "It’s All about Details. Why the Polish Land Policy Framework Fails to Manage Designation of Developable Land," Land, MDPI, vol. 10(9), pages 1-27, August.
    4. 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.
    5. Yuan, Chaoqing & Liu, Sifeng & Wu, Junlong, 2010. "Corrigendum to "Research on energy-saving effect of technological progress based on Cobb-Douglas production function": Energy Policy. Volume (37) 2842-2846," Energy Policy, Elsevier, vol. 38(5), pages 2611-2611, May.
    6. Shiying Hou & Liangrong Song & Jiaqi Wang & Shujahat Ali, 2021. "How Land Finance Affects Green Economic Growth in Chinese Cities," Land, MDPI, vol. 10(8), pages 1-16, August.
    7. Yanwei Zhang & Hualin Xie, 2019. "Interactive Relationship among Urban Expansion, Economic Development, and Population Growth since the Reform and Opening up in China: An Analysis Based on a Vector Error Correction Model," Land, MDPI, vol. 8(10), pages 1-31, October.
    8. Guanglong Dong & Yibing Ge & Haiwei Jia & Chuanzhun Sun & Senyuan Pan, 2021. "Land Use Multi-Suitability, Land Resource Scarcity and Diversity of Human Needs: A New Framework for Land Use Conflict Identification," Land, MDPI, vol. 10(10), pages 1-14, September.
    9. Shuai Shi & Siu Kei Wong & Chen Zheng, 2022. "Network capital and urban development: an inter-urban capital flow network analysis," Regional Studies, Taylor & Francis Journals, vol. 56(3), pages 406-419, March.
    10. Kenneth G. Stewart, 2022. "How important are land values in house price growth? Evidence from Canadian cities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 249-271, February.
    11. Yan Yan & Hui Liu & Ningcheng Wang & Shenjun Yao, 2021. "How Does Low-Density Urbanization Reduce the Financial Sustainability of Chinese Cities? A Debt Perspective," Land, MDPI, vol. 10(9), pages 1-18, September.
    12. Charles I. Jones, 2005. "The Shape of Production Functions and the Direction of Technical Change," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 517-549.
    13. Xinhai Lu & Mengcheng Wang & Yifeng Tang, 2021. "The Spatial Changes of Transportation Infrastructure and Its Threshold Effects on Urban Land Use Efficiency: Evidence from China," Land, MDPI, vol. 10(4), pages 1-15, March.
    14. Andres Dominguez & Hernán Enríquez Sierra & Nicolás Cuervo Ballesteros, 2021. "Regional Spatial Structure and Land Use: Evidence from Bogotá and 17 Municipalities," Land, MDPI, vol. 10(9), pages 1-22, August.
    15. Lichtenberg, Erik & Ding, Chengri, 2009. "Local officials as land developers: Urban spatial expansion in China," Journal of Urban Economics, Elsevier, vol. 66(1), pages 57-64, July.
    16. Richard Buttimer & Steven Clark & Steven Ott, 2008. "Land Development: Risk, Return and Risk Management," The Journal of Real Estate Finance and Economics, Springer, vol. 36(1), pages 81-102, January.
    17. Gadea Rivas, Maria Dolores & Sanz Villarroya, Isabel, 2017. "Testing the convergence hypothesis for OECD countries: A reappraisal," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-22.
    18. Yunfei Peng & Fangling Yang & Lingwei Zhu & Ruru Li & Chao Wu & Deng Chen, 2021. "Comparative Analysis of the Factors Influencing Land Use Change for Emerging Industry and Traditional Industry: A Case Study of Shenzhen City, China," Land, MDPI, vol. 10(6), pages 1-17, May.
    19. Huang, Naqun & Ning, Guangjie & Rong, Zhao, 2022. "Destination homeownership and labor force participation: Evidence from rural-to-urban migrants in China," Journal of Housing Economics, Elsevier, vol. 55(C).
    20. Fan, Jianshuang & Zhou, Lin, 2019. "Three-dimensional intergovernmental competition and urban sprawl: Evidence from Chinese prefectural-level cities," Land Use Policy, Elsevier, vol. 87(C).
    21. Davide Pasquali & Alessandro Marucci, 2021. "The Effects of Urban and Economic Development on Coastal Zone Management," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    22. 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.
    23. Yingkai Tang & Kun Wang & Xuanming Ji & He Xu & Yangqing Xiao, 2021. "Assessment and Spatial-Temporal Evolution Analysis of Urban Land Use Efficiency under Green Development Orientation: Case of the Yangtze River Delta Urban Agglomerations," Land, MDPI, vol. 10(7), pages 1-19, July.
    24. 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.
    25. Gao, Jinlong & Chen, Wen & Yuan, Feng, 2017. "Spatial restructuring and the logic of industrial land redevelopment in urban China: I. Theoretical considerations," Land Use Policy, Elsevier, vol. 68(C), pages 604-613.
    26. Dana Hájková & Jaromír Hurník, 2007. "Cobb-Douglas Production Function: The Case of a Converging Economy," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(9-10), pages 465-476, October.
    27. Ming Lu & Shiqing Jiang, 2008. "Labor Market Reform, Income Inequality and Economic Growth in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(6), pages 63-80, November.
    28. Dias, Vitor M. & Soares, Pedro Paulo de Miranda Araújo & Brondizio, Eduardo S. & Cruz, Sandra Helena Ribeiro, 2021. "Grassroots mobilization in Brazil’s urban Amazon: Global investments, persistent floods, and local resistance across political and legal arenas," World Development, Elsevier, vol. 146(C).
    29. Hui Li & Kunqiu Chen & Lei Yan & Yulin Zhu & Liuwen Liao & Yangle Chen, 2021. "Urban Land Use Transitions and the Economic Spatial Spillovers of Central Cities in China’s Urban Agglomerations," Land, MDPI, vol. 10(6), pages 1-27, June.
    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. Huicai Yang & Jingtao Ma & Xinying Jiao & Guofei Shang & Haiming Yan, 2023. "Characteristics and Driving Mechanism of Urban Construction Land Expansion along with Rapid Urbanization and Carbon Neutrality in Beijing, China," Land, MDPI, vol. 12(7), pages 1-17, July.
    2. Xueli Zhong & Yongfeng Li, 2023. "Mediating Effect and Suppressing Effect: Intermediate Mechanism of Urban Land Use Efficiency and Economic Development," Land, MDPI, vol. 12(6), pages 1-22, May.

    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. Guoqing Cui & Wenlong Zheng & Siliang Chen & Yue Dong & Tingyu Huang, 2022. "Study on the Spatial Pattern Characteristics and Influencing Factors of Inefficient Urban Land Use in the Yellow River Basin," Land, MDPI, vol. 11(9), pages 1-24, September.
    2. 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.
    3. Jiale Zhou & Xiaofen Yu & Xizan Jin & Nuannuan Mao, 2021. "Government Competition, Land Supply Structure and Semi-Urbanization in China," Land, MDPI, vol. 10(12), pages 1-29, December.
    4. Hui Li & Kunqiu Chen & Lei Yan & Yulin Zhu & Liuwen Liao & Yangle Chen, 2021. "Urban Land Use Transitions and the Economic Spatial Spillovers of Central Cities in China’s Urban Agglomerations," Land, MDPI, vol. 10(6), pages 1-27, June.
    5. Bao Meng & Shaoyao Zhang & Wei Deng & Li Peng & Peng Zhou & Hao Zhang, 2023. "Identification and Analysis of Territorial Spatial Utilization Conflicts in Yibin Based on Multidimensional Perspective," Land, MDPI, vol. 12(5), pages 1-20, May.
    6. Xin Zhang & Jinghu Pan, 2021. "Spatiotemporal Pattern and Driving Factors of Urban Sprawl in China," Land, MDPI, vol. 10(11), pages 1-16, November.
    7. Cao, Kexin & Deng, Yu & Wang, Wenxue & Liu, Shenghe, 2023. "The spatial heterogeneity and dynamics of land redevelopment: Evidence from 287 Chinese cities," Land Use Policy, Elsevier, vol. 132(C).
    8. Liu Yang & Bingyang Han & Zhili Ma & Ting Wang & Yingchao Lin, 2022. "Analysis of the Urban Land Use Efficiency in the New-Type Urbanization Process of China’s Yangtze River Economic Belt," IJERPH, MDPI, vol. 19(13), pages 1-22, July.
    9. Yuzheng Zhang & Shirui He, 2023. "Local Government’s Land Finance Dependence and Migrants’ Settlement Intentions: Evidence from China," Land, MDPI, vol. 12(7), pages 1-16, July.
    10. Wang, Weifang & van Noorloos, Femke & Spit, Tejo, 2020. "Stakeholder power relations in Land Value Capture: comparing public (China) and private (U.S.) dominant regimes," Land Use Policy, Elsevier, vol. 91(C).
    11. Jingbo Liu & Haoyuan Feng & Kun Wang, 2022. "The Low-Carbon City Pilot Policy and Urban Land Use Efficiency: A Policy Assessment from China," Land, MDPI, vol. 11(5), pages 1-18, April.
    12. 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.
    13. Yudan Zhang & Yuanqing Li & Yanan Chen & Shirao Liu & Qingyuan Yang, 2022. "Spatiotemporal Heterogeneity of Urban Land Expansion and Urban Population Growth under New Urbanization: A Case Study of Chongqing," IJERPH, MDPI, vol. 19(13), pages 1-25, June.
    14. Xiaoming Wang & Bocheng Chen & Qianqian Dong, 2022. "The Limit of Urban Land Expansion Based on Population Growth and Economic Development: A Case Study of Shandong Province in China," Sustainability, MDPI, vol. 15(1), pages 1-14, December.
    15. Fan, Jianshuang & Zhou, Lin & Yu, Xiaofen & Zhang, Yanjiang, 2021. "Impact of land quota and land supply structure on China’s housing prices: Quasi-natural experiment based on land quota policy adjustment," Land Use Policy, Elsevier, vol. 106(C).
    16. Zhou, Lin & Tian, Li & Cao, Yandong & Yang, Linchuan, 2021. "Industrial land supply at different technological intensities and its contribution to economic growth in China: A case study of the Beijing-Tianjin-Hebei region," Land Use Policy, Elsevier, vol. 101(C).
    17. Xiaodong Yang & Weilong Wang & Xufeng Su & Siyu Ren & Qiying Ran & Jianlong Wang & Jianhong Cao, 2023. "Analysis of the influence of land finance on haze pollution: An empirical study based on 269 prefecture‐level cities in China," Growth and Change, Wiley Blackwell, vol. 54(1), pages 101-134, March.
    18. Ge Gao & Jichang Dong & Xiuting Li, 2022. "Local Government Debt, Real Estate Investment and Corporate Investment: Evidence from China," Sustainability, MDPI, vol. 14(19), pages 1-21, September.
    19. Qingyao Huang & Yihua Liu, 2021. "The Coupling between Urban Expansion and Population Growth: An Analysis of Urban Agglomerations in China (2005–2020)," Sustainability, MDPI, vol. 13(13), pages 1-18, June.
    20. Mingzhi Zhang & Hongyu Liu & Yangyue Su & Xiangyu Zhou & Zhaocheng Li & Chao Chen, 2022. "Assessment and Decomposition of Regional Land Use Efficiency of the Service Sector in China," Land, MDPI, vol. 11(11), pages 1-19, October.

    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:11:y:2022:i:6:p:801-:d:826636. 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.