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The effect of the spatial misallocation of land supply on entrepreneurial activity

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Listed:
  • Jinhua Zhang
  • Zhenhuai Shi
  • Xiaoping Chu
  • Yao Shen

Abstract

Drawing on a unique dataset combining the registration information of over 200 million firms and over 2.1 million land transaction records in China, this study empirically tests how the spatial misallocation of land supply affects entrepreneurial activity. The study shows that the ‘paradox’ of an increase in the government supply of land leading to a decrease in entrepreneurial activity is caused by the spatial misallocation of this land supply. We highlight the importance of the proper spatial allocation of land for promoting entrepreneurial activity.

Suggested Citation

  • Jinhua Zhang & Zhenhuai Shi & Xiaoping Chu & Yao Shen, 2021. "The effect of the spatial misallocation of land supply on entrepreneurial activity," Applied Economics Letters, Taylor & Francis Journals, vol. 28(11), pages 949-953, June.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:11:p:949-953
    DOI: 10.1080/13504851.2020.1788705
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    Cited by:

    1. Yajun Ma & Ping Zhang & Kaixu Zhao & Yong Zhou & Sidong Zhao, 2022. "A Dynamic Performance and Differentiation Management Policy for Urban Construction Land Use Change in Gansu, China," Land, MDPI, vol. 11(6), pages 1-31, June.
    2. Congguo Zhang & Di Yao & Yanlin Zhen & Weiwei Li & Kerun Li, 2022. "Mismatched Relationship between Urban Industrial Land Consumption and Growth of Manufacturing: Evidence from the Yangtze River Delta," Land, MDPI, vol. 11(9), pages 1-35, August.
    3. Huasheng Song & Guili Sun, 2022. "Investment Promotion, Tax Competition, and Industrial Land Price in China—Evidence from the Corporate Tax Collection Reform," Land, MDPI, vol. 11(5), pages 1-17, May.

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