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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 specializations into more complex industries. In China, local governments tend to use industrial land subsidy as a policy tool to attract new firms in desired industries and promote industrial growth. However, relatively little is known about the impact of this policy tool on the economic complexity of Chinese cities. Drawing upon the recent literature on the principle of relatedness and economic complexity, this paper investigates the impact of this industrial land policy (ILP) on the diversification of Chinese cities into more complex industries. The empirical results support our hypothesis that those cities providing higher intensity of land subsidy are more likely to enter new industries, in particular the most complex ones.

Suggested Citation

  • Zhaoyingzi Dong & Yingcheng Li & Pierre-Alexandre Balland & Siqi Zheng, 2019. "Industrial Land Policy and Economic Complexity of Chinese Cities," Papers in Evolutionary Economic Geography (PEEG) 1916, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2019.
  • Handle: RePEc:egu:wpaper:1916
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    File URL: http://econ.geo.uu.nl/peeg/peeg1916.pdf
    File Function: Version May 2019
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Complexity; Industry Complexity; Industrial Land Policy; Industrial Diversification;

    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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