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Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model

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  • Yongjian Liu
  • Hong Geng

Abstract

This study examines regional competition in China by considering the spatial correlation and spillover effect of construction land price distortion using a two‐regime Spatial Durbin Model to investigate the patterns and trends of the competition between 285 cities in China from 2006 to 2015. The study finds: (i) price distortion of construction land is a common phenomenon but the distortion index generally shows a declining trend; (ii) regional competition through construction land price distortion shows a weakly intensified pattern, although the competition patterns in the four regions of China varied; and (iii) the intensity of competition between regions was lower during the 12th Five‐year Plan compared to the 11th Plan. The intensity of competition between cities was also lower inside than outside urban agglomerations. These results provide policy implications for remedying the price distortion of construction land and promoting regional coordinated development.

Suggested Citation

  • Yongjian Liu & Hong Geng, 2019. "Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(4), pages 104-126, July.
    • Handle: RePEc:bla:chinae:v:27:y:2019:i:4:p:104-126
    DOI: 10.1111/cwe.12288
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    Cited by:

    1. Yu Liu & Zhuorui Yu & Daining Liu & Hao Zhang & Long Zhou & Guoqiang Shen & Chasong Zhu & Yiheng Sun & Yanran Wang, 2022. "Triple Spatial Effects of the Administrative Hierarchy on Urban Built-Up Areas in Fujian Province, China: Heterogeneity, Radiation, and Segmentation," Land, MDPI, vol. 11(12), pages 1-24, December.
    2. Shimei Wu & Haotian Zhang, 2022. "The existence and mechanism of the domestic pollution haven hypothesis: evidence from 265 cities in China," Letters in Spatial and Resource Sciences, Springer, vol. 15(3), pages 287-310, December.

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