IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v63y2026i2p244-262.html

Greater centralization, increased marketization? Evidence from China’s primary urban land market

Author

Listed:
  • Yaoyu Zhang

    (Nanjing University of Posts and Telecommunications, Jiangsu, China)

  • Zhi Lin

    (Jiangxi Agricultural University, Jiangxi, China)

  • Bo Wang

    (Nanjing Agricultural University, Jiangsu, China)

  • Hang Ren

    (Nanjing University of Posts and Telecommunications, Jiangsu, China)

Abstract

Exploring the market-oriented allocation of resources is a significant topic in both academic research and government reform. In China, local governments have a monopoly over the supply of primary urban land, leading to an underdeveloped land market. This study examined the supply of primary urban land in China to assess whether enhancing the centralization of land supply by local governments improves the efficiency and equity of market-oriented resource allocation. Using a comprehensive dataset that includes parcel-level data (1,070,823 observations) and city-level data (251 cities) from 2007 to 2021, this study constructs an econometric model. The estimation results indicate that a greater degree of centralization in the primary urban land market improves market-based resource allocation and enhances market performance. The market-oriented transaction prices, which are more in line with the Law of One Price , reduced development time and increased plot ratios. Furthermore, from a macroeconomic perspective, heightened land supply frequency may lead to an increase in housing prices, potentially impeding industrial development. Centralizing land supply is not a complex reform; rather, it has discernible effects. The findings and recommendations are relevant not only for China but also for other developing and transitional countries.

Suggested Citation

  • Yaoyu Zhang & Zhi Lin & Bo Wang & Hang Ren, 2026. "Greater centralization, increased marketization? Evidence from China’s primary urban land market," Urban Studies, Urban Studies Journal Limited, vol. 63(2), pages 244-262, February.
    • Handle: RePEc:sae:urbstu:v:63:y:2026:i:2:p:244-262
    DOI: 10.1177/00420980251346093
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/00420980251346093
    Download Restriction: no
    File URL: https://libkey.io/10.1177/00420980251346093?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
    ---><---

    References listed on IDEAS

    as
    1. Chengri Ding & Erik Lichtenberg, 2011. "Land And Urban Economic Growth In China," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 299-317, May.
    2. Yuan, Feng & Wei, Yehua Dennis & Xiao, Weiye, 2019. "Land marketization, fiscal decentralization, and the dynamics of urban land prices in transitional China," Land Use Policy, Elsevier, vol. 89(C).
    3. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 879-924.
    4. Qin, Yu & Zhu, Hongjia & Zhu, Rong, 2016. "Changes in the distribution of land prices in urban China during 2007–2012," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 77-90.
    5. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
    6. Wenbin Huang, 2022. "Government Land Regulations and Housing Supply Elasticity in Urban China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 122-148, July.
    7. Anne Haila, 2007. "The Market as the New Emperor," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 31(1), pages 3-20, March.
    8. Friedman, Joseph & Jimenez, Emmanuel & Mayo, Stephen K., 1988. "The demand for tenure security in developing countries," Journal of Development Economics, Elsevier, vol. 29(2), pages 185-198, September.
    9. Edward L. Glaeser, 2007. "Do Regional Economies Need Regional Coordination?," Levine's Bibliography 321307000000000917, UCLA Department of Economics.
    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. Yuan, Feng & Wei, Yehua Dennis & Xiao, Weiye, 2019. "Land marketization, fiscal decentralization, and the dynamics of urban land prices in transitional China," Land Use Policy, Elsevier, vol. 89(C).
    2. Jiang, Ronghao & Lin, George C.S., 2021. "Placing China’s land marketization: The state, market, and the changing geography of land use in Chinese cities," Land Use Policy, Elsevier, vol. 103(C).
    3. Man Jiao & Hengzhou Xu, 2022. "Does Rural Construction Land Marketization Inhibit State-Owned Industrial Land Transactions? Evidence from Huzhou City, China," Land, MDPI, vol. 11(9), pages 1-17, September.
    4. Wen, Lanjiao & Yang, Shenjie & Qi, Mengna & Zhang, Anlu, 2024. "How does China’s rural collective commercialized land market run? New evidence from 26 pilot areas, China," Land Use Policy, Elsevier, vol. 136(C).
    5. Cheng, Jing, 2022. "Analysis of the factors influencing industrial land leasing in Beijing of China based on the district-level data," Land Use Policy, Elsevier, vol. 122(C).
    6. Feng Yuan & Weiye Xiao & Yehua Dennis Wei, 2023. "Heterogeneous mechanisms of urban land price in China: a perspective of natural restrictions and strategic supply," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    7. Li, L. & Bao, Helen X.H. & Robinson, Guy M., 2020. "The return of state control and its impact on land market efficiency in urban China," Land Use Policy, Elsevier, vol. 99(C).
    8. Lu, Shenghua & Wang, Hui, 2022. "Market-oriented reform and land use efficiency: Evidence from a regression discontinuity design," Land Use Policy, Elsevier, vol. 115(C).
    9. Jing Cheng & Xiaowei Luo, 2022. "Analyzing the Land Leasing Behavior of the Government of Beijing, China, via the Multinomial Logit Model," Land, MDPI, vol. 11(3), pages 1-14, March.
    10. Fan, Xin & Qiu, Sainan & Sun, Yukun, 2020. "Land finance dependence and urban land marketization in China: The perspective of strategic choice of local governments on land transfer," Land Use Policy, Elsevier, vol. 99(C).
    11. Zhou, Dingyang & Li, Zitong & Wang, Sifei & Tian, Yingying & Zhang, Yu & Jiang, Guanghui, 2021. "How does the newly urban residential built-up density differ across Chinese cities under rapid urban expansion? Evidence from residential FAR and statistical data from 2007 to 2016," Land Use Policy, Elsevier, vol. 104(C).
    12. Ragil Haryanto & Imam Buchori & Nany Yuliastuti & Ibnu Saleh & Agung Sugiri & Bagus Nuari & Nisriena Rachmi Putri, 2020. "Preparedness to Implement a Spatial Plan: The Impact of the Land Cooperative in Central Bangka Regency," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    13. Klein, Alexander & Leunig, Tim, 2013. "Gibrat’s Law and the British Industrial Revolution," CAGE Online Working Paper Series 146, Competitive Advantage in the Global Economy (CAGE).
    14. Dorward, Leejiah J., 2012. "Where are the best opportunities for reducing greenhouse gas emissions in the food system (including the food chain)? A comment," Food Policy, Elsevier, vol. 37(4), pages 463-466.
    15. Ahsan Nawaz & Xing Su & Qaiser Mohi Ud Din & Muhammad Irslan Khalid & Muhammad Bilal & Syyed Adnan Raheel Shah, 2020. "Identification of the H&S (Health and Safety Factors) Involved in Infrastructure Projects in Developing Countries-A Sequential Mixed Method Approach of OLMT-Project," IJERPH, MDPI, vol. 17(2), pages 1-18, January.
    16. Frida Thomas Pacho, 2018. "Diversified Network Effects on Innovation Performance in Tanzania: Innovation Strategy in Service Firms," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 5(1), pages 1-1, December.
    17. Jensen, Robert T., 2009. "Information, Efficiency And Welfare In Agricultural Markets," 2009 Conference, August 16-22, 2009, Beijing, China 53206, International Association of Agricultural Economists.
    18. Han, Wenjing & Zhang, Xiaoling & Zheng, Xian, 2020. "Land use regulation and urban land value: Evidence from China," Land Use Policy, Elsevier, vol. 92(C).
    19. Elizabeth J. Altman & Frank Nagle & Michael L. Tushman, 2013. "Innovating Without Information Constraints: Organizations, Communities, and Innovation When Information Costs Approach Zero," Harvard Business School Working Papers 14-043, Harvard Business School, revised Sep 2014.
    20. Björkegren, Daniel & Karaca, Burak Ceyhun, 2022. "Network adoption subsidies: A digital evaluation of a rural mobile phone program in Rwanda," Journal of Development Economics, Elsevier, vol. 154(C).

    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:sae:urbstu:v:63:y:2026:i:2:p:244-262. 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.