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How Land Finance Affects Green Economic Growth in Chinese Cities

Author

Listed:
  • Shiying Hou

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Liangrong Song

    (Business School, University of Shanghai for Science and Technology, Shanghai 200093, China)

  • Jiaqi Wang

    (Faculty of Economics and Administration, Universiti Malaya, Kuala Lumpur 50603, Malaysia)

  • Shujahat Ali

    (Department of Banking and Finance, Mirpur University of Science and Technology, Mirpur 10250, Pakistan)

Abstract

Land finance is an important means for local governments to develop a regional economy. Studying the impact of land finance on green economic growth has important practical significance for achieving high-quality economic growth in China. This article uses panel data from 283 prefecture-level cities in China to construct a spatial econometric model to study the impact of land finance on green economic growth. The research results show that land finance has a significant inhibitory effect on the growth of the green economy. The direct, indirect and total effects of land finance on green economic growth are all significantly negative, which indicates that the local government’s method of making up for the financial funding gap through land finance not only inhibited the green economic growth in the region, but also had an impact on neighboring areas. Local government competition has a regulating effect on the impact of land finance and urban green economic growth, and government competition has actually strengthened the inhibitory effect of land finance on green economic growth. The above conclusions can provide useful practical guidance for optimizing the development of land finance, standardizing local government behavior, and promoting green economic growth.

Suggested Citation

  • Shiying Hou & Liangrong Song & Jiaqi Wang & Shujahat Ali, 2021. "How Land Finance Affects Green Economic Growth in Chinese Cities," Land, MDPI, vol. 10(8), pages 1-16, August.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:8:p:819-:d:608434
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    Cited by:

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    4. Fa Tian & Shiying Hou, 2022. "The Impact of Green Finance on Industrial Land Use Efficiency: Evidence from 279 Cities in China," Sustainability, MDPI, vol. 14(10), pages 1-16, May.
    5. Yuzheng Zhang & Shirui He, 2023. "Local Government’s Land Finance Dependence and Migrants’ Settlement Intentions: Evidence from China," Land, MDPI, vol. 12(7), pages 1-16, July.
    6. Guoliang Xu & Xiaonan Yin & Guangdong Wu & Ning Gao, 2022. "Rethinking the Contribution of Land Element to Urban Economic Growth: Evidence from 30 Provinces in China," Land, MDPI, vol. 11(6), pages 1-16, May.
    7. Xiaodong Yang & Weilong Wang & Xufeng Su & Siyu Ren & Qiying Ran & Jianlong Wang & Jianhong Cao, 2023. "Analysis of the influence of land finance on haze pollution: An empirical study based on 269 prefecture‐level cities in China," Growth and Change, Wiley Blackwell, vol. 54(1), pages 101-134, March.
    8. Ke Zhao & Danling Chen & Xupeng Zhang & Xiaojie Zhang, 2022. "How Do Urban Land Expansion, Land Finance, and Economic Growth Interact?," IJERPH, MDPI, vol. 19(9), pages 1-15, April.
    9. Zixing Wang & Meirong Zhang, 2023. "The Distributional Effects Associated with Land Finance in China: A Perspective Based on the Urban–Rural Income Gap," Land, MDPI, vol. 12(9), pages 1-15, September.

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