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Industrial land policy and economic complexity of Chinese Cities

Author

Listed:
  • Zhaoyingzi Dong
  • Yingcheng Li
  • Pierre-Alexandre Balland
  • Siqi Zheng

Abstract

Economies producing more complex products tend to be wealthier and grow more quickly. Therefore, a key issue for cities around the world is to develop new specialisations into more complex industries. In China, local governments tend to use urban land allocation as a tool to attract new firms from specific industries and promote industrial growth. However, relatively little is known about how this policy tool is related to the economic complexity of Chinese cities. Drawing upon the recent literature on the principle of relatedness and economic complexity, this paper investigates the relationship between industrial land policy (ILP) and the diversification of Chinese cities into more complex industries. The empirical results support our hypothesis that cities providing higher intensity of land subsidy are more likely to enter new industries and the more complex ones in particular.

Suggested Citation

  • Zhaoyingzi Dong & Yingcheng Li & Pierre-Alexandre Balland & Siqi Zheng, 2022. "Industrial land policy and economic complexity of Chinese Cities," Industry and Innovation, Taylor & Francis Journals, vol. 29(3), pages 367-395, March.
    • Handle: RePEc:taf:indinn:v:29:y:2022:i:3:p:367-395
    DOI: 10.1080/13662716.2021.1990022
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    Citations

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    Cited by:

    1. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    2. C'esar A. Hidalgo, 2022. "The Policy Implications of Economic Complexity," Papers 2205.02164, arXiv.org, revised Aug 2023.
    3. Zhuoming Ren & Wenli Du & Ziyi Zhao & Li Zhao & Tongfeng Weng, 2024. "Strategies for selecting trading partners based on economic complexity of international trade networks: A comparison between Chinese and the US markets," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    4. Behrooz Shahmoradi & Nejla Ould Daoud Ellili, 2024. "Bibliometric review of research on economic complexity: current trends, developments, and future research directions," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 51(4), pages 859-891, December.
    5. Liao, Wei & Gu, Jianping & Li, Kaijian, 2025. "Roles of related and unrelated external technologies in shaping regional breakthrough technological advantages," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    6. Zhou, Lin & Tian, Li & Cao, Yandong & Yang, Linchuan, 2021. "Industrial land supply at different technological intensities and its contribution to economic growth in China: A case study of the Beijing-Tianjin-Hebei region," Land Use Policy, Elsevier, vol. 101(C).
    7. Dong, Xuebing & Miao, Binbin & Chi, Ruonan, 2023. "Capital flows under integration: Evidence from China's metropolitan area development planning," China Economic Review, Elsevier, vol. 82(C).
    8. Linzhuo Li & Nannan Zhao, 2023. "Understanding urban concentration of complex manufacturing activities in China," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-15, March.
    9. Ke Liu & Ran Du & Jiaxin He, 2025. "Fluctuating Development Traits of Industrial Land Mismatch and Its Influence on Urban Ecological Modernization," Land, MDPI, vol. 14(5), pages 1-35, May.
    10. Yao Luo & Chen Li & Junjun Zhi & Qun Wu & Jiajing Yao, 2022. "Policy Innovation of Life Cycle Management of Industrial Land Supply in China," Land, MDPI, vol. 11(6), pages 1-17, June.

    More about this item

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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