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Analysis of the Impact of Industrial Land Price Distortion on Overcapacity in the Textile Industry and Its Sustainability in China

Author

Listed:
  • Xiaoying Ju

    (School of Textile Science and Engineering, Zhejiang Sci-Tech University, Hangzhou 310018, China
    These authors contributed equally to this work.)

  • Huizhao Li

    (School of Economics, Qufu Normal University, Rizhao 276826, China
    These authors contributed equally to this work.)

  • Peng Yao

    (School of Economics, Qufu Normal University, Rizhao 276826, China)

  • Jianxu Liu

    (School of Economics, Shandong University of Finance and Economics, Jinan 250004, China)

  • Fei Chen

    (School of Textile Science and Engineering, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • Songsak Sriboonchitta

    (Faculty of Economics, Chiang Mai University, Chiang Mai 52000, Thailand)

Abstract

At present, China is faced with a situation of unbalanced regional economic development. The report of the 19th session of the national congress of the Communist Party of China pointed out that we should accelerate the implementation of the strategy of coordinated regional development. However, this study finds that, in the process of “leaving the cage and changing birds”, the number of enterprises in the textile industry in the eastern region has risen again, which, in turn, has led to overcapacity and has seriously affected the sustainable development of the textile industry. The present study finds that the increasingly distorted price of industrial land is the root cause of the “surge phenomenon” of enterprises in the textile industry and overcapacity. Therefore, China’s central government should be fully aware of the negative impact of the distorted price of industrial land on the sustainable development of textile industry. Efforts must be made to solve the problems of the excessive influx of textile enterprises, overcapacity, and unsustainability in the eastern region in three aspects. Specifically, the land transfer procedure should be standardized, the motivation of local governments’ land attracting investment should be curbed, and the introduction of high-quality enterprises should be paid attention to.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4491-:d:790448
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