IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v90y2020ics0264837719311561.html
   My bibliography  Save this article

Does the establishment of development zones really improve industrial land use efficiency? Implications for China’s high-quality development policy

Author

Listed:
  • Sun, Yifan
  • Ma, Anbing
  • Su, Haorui
  • Su, Shiliang
  • Chen, Fei
  • Wang, Wen
  • Weng, Min

Abstract

As a popular form of land use worldwide, development zones (DZs) are selected and supported by authorities to accelerate structural transformation. Although the establishment of DZs is regarded to boost regional economic growth, whether or not it really improves industrial land use efficiency (ILUE) has not been adequately examined. Using firm-level data collected from Hangzhou, a typical megacity in China, geographically weighted regression is first applied to examine the spatially nonstationary associations between ILUE and potential determinants, and variance partitioning analysis is further used to compare the relative importance of the ILUE determinants. Then, hypothesis testing and Heckman selection model are utilized to quantify the impact of different types of DZs on ILUE. Results show, the capital intensity and employee density are major determinants of ILUE, and similar as other policy, agglomeration, location and firm heterogeneity factors, the association between them and ILUE is spatially nonstationary. Moreover, firms in high-tech industry development zones (HIDZs) have significantly higher ILUE, but no matter what the administrative level and development stage of economic and technological development zones (ETDZs) are, the firms in them own significantly lower ILUE. Besides, more intensive firm clusters and preferential policies will not help further improve ILUE for the in-zone firms, and the intensive land use related indicators are insignificant in the selection procedure. In general, DZs influence firm-level ILUE through selection effect, policy effect, cluster effect and location effect. HIDZs successfully promote ILUE of in-zone firms, but ETDZs fail to do so because of the abuse of preferential policy and the weak enforcement of intensive industrial land use policies. Implications are formulated for policy makers to improve ILUE within the context of high-quality development.

Suggested Citation

  • Sun, Yifan & Ma, Anbing & Su, Haorui & Su, Shiliang & Chen, Fei & Wang, Wen & Weng, Min, 2020. "Does the establishment of development zones really improve industrial land use efficiency? Implications for China’s high-quality development policy," Land Use Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:lauspo:v:90:y:2020:i:c:s0264837719311561
    DOI: 10.1016/j.landusepol.2019.104265
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719311561
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2019.104265?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gao, Jinlong & Chen, Wen & Liu, Yansui, 2018. "Spatial restructuring and the logic of industrial land redevelopment in urban China: II. A case study of the redevelopment of a local state-owned enterprise in Nanjing," Land Use Policy, Elsevier, vol. 72(C), pages 372-380.
    2. Leon N. Moses, 1958. "Location and the Theory of Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(2), pages 259-272.
    3. Helmut Fryges & Joachim Wagner, 2021. "Exports and Productivity Growth — First Evidence from a Continuous Treatment Approach," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 6, pages 57-86, World Scientific Publishing Co. Pte. Ltd..
    4. James J. Heckman & Jeffrey Smith & Nancy Clements, 1997. "Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 487-535.
    5. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    6. Zheng, Dan & Shi, Minjun, 2018. "Industrial land policy, firm heterogeneity and firm location choice: Evidence from China," Land Use Policy, Elsevier, vol. 76(C), pages 58-67.
    7. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2009. "How does labour mobility affect the performance of plants? The importance of relatedness and geographical proximity," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 169-190, March.
    8. Zeng,Zhihua, 2015. "Global experiences with special economic zones : focus on China and Africa," Policy Research Working Paper Series 7240, The World Bank.
    9. Annette Schminke & Johannes Van Biesebroeck, 2013. "Using export market performance to evaluate regional preferential policies in China," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(2), pages 343-367, June.
    10. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.
    11. Yu, Junqing & Zhou, Kaile & Yang, Shanlin, 2019. "Land use efficiency and influencing factors of urban agglomerations in China," Land Use Policy, Elsevier, vol. 88(C).
    12. Daniel Graham & H. Kim, 2008. "An empirical analytical framework for agglomeration economies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 267-289, June.
    13. Figueiredo, Octavio & Guimaraes, Paulo & Woodward, Douglas, 2002. "Home-field advantage: location decisions of Portuguese entrepreneurs," Journal of Urban Economics, Elsevier, vol. 52(2), pages 341-361, September.
    14. Cheng, Wenli & Xu, Yuyun & Zhou, Nan & He, Zaizhong & Zhang, Longyao, 2019. "How did land titling affect China’s rural land rental market? Size, composition and efficiency," Land Use Policy, Elsevier, vol. 82(C), pages 609-619.
    15. Lee, Chang-Yang, 2018. "Geographical clustering and firm growth: Differential growth performance among clustered firms," Research Policy, Elsevier, vol. 47(6), pages 1173-1184.
    16. Pierre Philippe Combes & Gilles Duranton & Henry G. Overman, 2005. "Agglomeration and the adjustment of the spatial economy§," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 311-349, August.
    17. Zheng, Siqi & Sun, Weizeng & Wu, Jianfeng & Kahn, Matthew E., 2017. "The birth of edge cities in China: Measuring the effects of industrial parks policy," Journal of Urban Economics, Elsevier, vol. 100(C), pages 80-103.
    18. Liu, Yansui, 2018. "Introduction to land use and rural sustainability in China," Land Use Policy, Elsevier, vol. 74(C), pages 1-4.
    19. Liu, Yu & Yan, Binjian & Wang, Yue & Zhou, Yingheng, 2019. "Will land transfer always increase technical efficiency in China?—A land cost perspective," Land Use Policy, Elsevier, vol. 82(C), pages 414-421.
    20. Costas Arkolakis, 2010. "Market Penetration Costs and the New Consumers Margin in International Trade," Journal of Political Economy, University of Chicago Press, vol. 118(6), pages 1151-1199.
    21. Zhu, Pingfang & Xu, Weimin & LUNDIN, Nannan, 2006. "The impact of government's fundings and tax incentives on industrial R&D investments--Empirical evidences from industrial sectors in Shanghai," China Economic Review, Elsevier, vol. 17(1), pages 51-69.
    22. Hu, Lirong & He, Shenjing & Han, Zixuan & Xiao, He & Su, Shiliang & Weng, Min & Cai, Zhongliang, 2019. "Monitoring housing rental prices based on social media:An integrated approach of machine-learning algorithms and hedonic modeling to inform equitable housing policies," Land Use Policy, Elsevier, vol. 82(C), pages 657-673.
    23. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    24. Zhang, Haiyang & Sonobe, Tetsushi, 2011. "Development of science and technology parks in China, 1988 - 2008," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-25.
    25. Feng, Ping & Ke, Shanzi, 2016. "Self-selection and performance of R&D input of heterogeneous firms: Evidence from China's manufacturing industries," China Economic Review, Elsevier, vol. 41(C), pages 181-195.
    26. Asheim, Bjorn T & Isaksen, Arne, 2002. "Regional Innovation Systems: The Integration of Local 'Sticky' and Global 'Ubiquitous' Knowledge," The Journal of Technology Transfer, Springer, vol. 27(1), pages 77-86, January.
    27. Cheng, Leonard K. & Kwan, Yum K., 2000. "What are the determinants of the location of foreign direct investment? The Chinese experience," Journal of International Economics, Elsevier, vol. 51(2), pages 379-400, August.
    28. Zee, Howell H. & Stotsky, Janet G. & Ley, Eduardo, 2002. "Tax Incentives for Business Investment: A Primer for Policy Makers in Developing Countries," World Development, Elsevier, vol. 30(9), pages 1497-1516, September.
    29. 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.
    30. Liu, Jing & Jin, Xiaobin & Xu, Weiyi & Fan, Yeting & Ren, Jie & Zhang, Xiaolin & Zhou, Yinkang, 2019. "Spatial coupling differentiation and development zoning trade-off of land space utilization efficiency in eastern China," Land Use Policy, Elsevier, vol. 85(C), pages 310-327.
    31. Emmanuel Cleeve, 2008. "How effective are fiscal incentives to attract FDI to Sub-Saharan Africa?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 42(1), pages 135-153, September.
    32. Wei Han & Ying Zhang & Jianming Cai & Enpu Ma, 2019. "Does Urban Industrial Agglomeration Lead to the Improvement of Land Use Efficiency in China? An Empirical Study from a Spatial Perspective," Sustainability, MDPI, vol. 11(4), pages 1-22, February.
    33. Grossman, Daniel, 2019. "The unintended effects of place based programs: Fertility and health effects of urban empowerment zones," Journal of Health Economics, Elsevier, vol. 63(C), pages 114-127.
    34. Zhang, Junfu, 2011. "Interjurisdictional competition for FDI: The case of China's "development zone fever"," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 145-159, March.
    Full references (including those not matched with items on IDEAS)

    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. Lu, Xinhai & Chen, Danling & Kuang, Bing & Zhang, Chaozheng & Cheng, Chen, 2020. "Is high-tech zone a policy trap or a growth drive? Insights from the perspective of urban land use efficiency," Land Use Policy, Elsevier, vol. 95(C).
    2. Lingfan Yang & Xiaolong Luo & Ziyao Ding & Xiaoman Liu & Zongni Gu, 2022. "Restructuring for Growth in Development Zones, China: A Systematic Literature and Policy Review (1984–2022)," Land, MDPI, vol. 11(7), pages 1-32, June.
    3. Chen, Wei & Su, Zhi & Wang, Yanan & Wang, Qian & Zhao, Guoli, 2022. "Do the rank difference of industrial development zones affect land use efficiency? A regional analysis in China," Socio-Economic Planning Sciences, Elsevier, vol. 80(C).
    4. Xin Nie & Jianxian Wu & Han Wang & Weijuan Li & Chengdao Huang & Lihua Li, 2022. "Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1578-1593, August.
    5. Qixuan Wang & Jie Ren & Simin Yan & Zhan Cao & Yao Cheng, 2023. "Do the High-Tech Industrial Development Zones Foster Urban Innovation? A Case Study of China," Land, MDPI, vol. 12(4), pages 1-18, April.
    6. Jieping Chen & Xianpeng Long & Shanlang Lin, 2022. "Special Economic Zone, Carbon Emissions and the Mechanism Role of Green Technology Vertical Spillover: Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(18), pages 1-22, September.
    7. Fan Yang & Peihong Tao & Xiao Cai & Jiayin Wang, 2022. "Transformation for Feature Upgrades or Higher Property Prices: Evidence from Industrial Land Regeneration in Shanghai," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    8. Shu, Hui & Xiong, Ping-ping, 2019. "Reallocation planning of urban industrial land for structure optimization and emission reduction: A practical analysis of urban agglomeration in China’s Yangtze River Delta," Land Use Policy, Elsevier, vol. 81(C), pages 604-623.
    9. Li, Xiaoying & Wu, Xinjie & Tan, Ying, 2021. "Impact of special economic zones on firm performance," Research in International Business and Finance, Elsevier, vol. 58(C).
    10. Lanzhuang Xu & Hu Xue & Qianrong Wu, 2022. "The Impact of Development Zones on Economic Growth in Less Developed Regions: Evidence from Guangxi, China," Land, MDPI, vol. 11(10), pages 1-20, September.
    11. Kahn, Matthew E. & Sun, Weizeng & Wu, Jianfeng & Zheng, Siqi, 2021. "Do political connections help or hinder urban economic growth? Evidence from 1,400 industrial parks in China," Journal of Urban Economics, Elsevier, vol. 121(C).
    12. Gao, Ming & Gu, Qiankun & He, Shijun, 2022. "Place-based policies, administrative hierarchy, and city growth: Evidence from China," Economic Modelling, Elsevier, vol. 115(C).
    13. Zheng, Liang, 2021. "Job creation or job relocation? Identifying the impact of China's special economic zones on local employment and industrial agglomeration," China Economic Review, Elsevier, vol. 69(C).
    14. Mitsuo Inada, 2022. "Promotion or liberalization: The effect of targeted investment policies on foreign direct investment inflows," Pacific Economic Review, Wiley Blackwell, vol. 27(5), pages 489-505, December.
    15. Ji, Mianmian & Lv, Wendai, 2022. "Demonstration zones reform and corporate philanthropy: Evidence from China," Economic Modelling, Elsevier, vol. 115(C).
    16. Wu, Yiyun & Zhu, Xiwei & Groenewold, Nicolaas, 2019. "The determinants and effectiveness of industrial policy in china: A study based on Five-Year Plans," China Economic Review, Elsevier, vol. 53(C), pages 225-242.
    17. Justin T Callais & Linan Peng, 2021. "The Impact of Place-Based Policy: Evidence from a Multiple Synthetic Control Analysis of the Northeastern Revitalization Program in China," Working Papers 2021-03, DePauw University, School of Business and Leadership and Department of Economics and Management.
    18. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    19. Stephan Heblich & Marlon Seror & Hao Xu & Stephan Yanos Zylberberg, 2019. "Industrial clusters in the long run: Evidence from Million-Rouble plants in China," Bristol Economics Discussion Papers 19/712, School of Economics, University of Bristol, UK.
    20. Xuan Tian & Jiajie Xu, 2022. "Do Place-Based Policies Promote Local Innovation and Entrepreneurship? [A model of growth through creative destruction]," Review of Finance, European Finance Association, vol. 26(3), pages 595-635.

    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:eee:lauspo:v:90:y:2020:i:c:s0264837719311561. 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: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    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.