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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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    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. 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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