IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v75y2025icp288-300.html

A limitation of land marketization: urban land resource allocation and regional industrial dynamics in China

Author

Listed:
  • Ren, Zhuoran
  • Guo, Jiahong

Abstract

Land marketization refers to the allocation of land resources through market mechanisms. Most existing literature suggests that land marketization positively contributes to economic and social development. Drawing from evolutionary economic geography, this paper empirically examines the impact of land marketization on regional industrial dynamics in China and reveals its limitations. The findings indicate that, in the short term, land marketization negatively impacts the creation of new regional industries and reinforces the path-dependent trajectory of regional industrial evolution. This phenomenon operates through three mechanisms: the cost-pull effect, the investment crowding-out effect, and the innovation environment-inhibiting effect. Further analysis reveals lag and regional heterogeneity in the impact of land marketization. The negative impact of land marketization on regional industry creation turns into a positive one in the long run, with more pronounced negative effects in regions facing greater fiscal pressure. This paper argues that while developing countries should pursue land marketization reforms, a gradual approach is essential, with the government playing a balanced role in resource allocation to mitigate early-stage negative effects.

Suggested Citation

  • Ren, Zhuoran & Guo, Jiahong, 2025. "A limitation of land marketization: urban land resource allocation and regional industrial dynamics in China," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 288-300.
    • Handle: RePEc:eee:streco:v:75:y:2025:i:c:p:288-300
    DOI: 10.1016/j.strueco.2025.07.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X25001225
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2025.07.008?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

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:streco:v:75:y:2025:i:c:p:288-300. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    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.