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Land financialization and regional innovation dynamics: Evidence from China

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  • Li, Hanteng
  • Qin, Yun

Abstract

Land finance for economic development is common in developing countries, but little is known about how land financialization affects regional innovation capacity. This study explores the complex relationship between land financialization and regional innovation capabilities in China from 2005 to 2021, using panel data from 31 provincial units. Our research reveals a non-linear relationship between land financialization and innovation, with initial facilitating effects followed by diminishing returns. Two key mechanisms emerge: land financialization hampers firms' R&D investment, thereby hampering innovation, while its over-reliance distorts market factors, negatively affecting innovation capacity.

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  • Li, Hanteng & Qin, Yun, 2024. "Land financialization and regional innovation dynamics: Evidence from China," Finance Research Letters, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:finlet:v:64:y:2024:i:c:s154461232400504x
    DOI: 10.1016/j.frl.2024.105474
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    Cited by:

    1. Jiang, Xin & Xu, Jinhua, 2024. "Decentralization of land development approval and economic impacts: A study on China's urban construction land reform," Finance Research Letters, Elsevier, vol. 69(PB).
    2. Siqi Yan & Jian Wang, 2025. "How Does Land Finance Influence Vegetation Dynamics in China?," Land, MDPI, vol. 14(3), pages 1-23, February.
    3. Zhong, Changbiao & Zhang, Chao, 2024. "Can data elements enhance urban innovation? Evidence from China," China Economic Review, Elsevier, vol. 88(C).
    4. Sun, Yuhuan & Li, Hui & Zhu, Bingcheng, 2024. "Factor market distortion, total factor energy efficiency and energy shadow price: A case of Chinese manufacturing industry," Energy, Elsevier, vol. 307(C).

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