How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China

Industrial transformation and upgrading is a key variable for developing countries to become developed countries. In China’s institutional environment, the central government’s decisions regarding the spatial allocation of land resources cause a differentiation in the evolution of industrial structu...

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Main Authors: Shangui Peng, Jian Wang, Hao Sun, Zhengning Guo
Format: Article
Language:English
Published: MDPI AG 2022-09-01
Series:Land
Subjects:
Online Access:https://www.mdpi.com/2073-445X/11/10/1630
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author Shangui Peng
Jian Wang
Hao Sun
Zhengning Guo
author_facet Shangui Peng
Jian Wang
Hao Sun
Zhengning Guo
author_sort Shangui Peng
collection DOAJ
description Industrial transformation and upgrading is a key variable for developing countries to become developed countries. In China’s institutional environment, the central government’s decisions regarding the spatial allocation of land resources cause a differentiation in the evolution of industrial structures and formats among regions, generating significant impacts on urban industrial transformation and upgrading (<i>UITU</i>), with important policy implications. Using panel data from 276 prefecture-level cities in China from 2007 to 2019, this study constructs a spatial panel econometric model and a mediating effect model to reveal how land spatial misallocation (<i>LSM</i>) affects <i>UITU</i>. The results show that, <i>LSM</i> is not conducive to <i>UITU</i>, and this adverse effect is greater in cities with a relative land supply shortage than in cities with a relative land supply surplus. Further research finds that the <i>LSM</i> caused by the relative land supply shortage affects the <i>UITU</i> mainly through intermediate mechanisms that crowd out the investments and financing for real industries and inhibit residents’ demand and innovation, and the <i>LSM</i> caused by the relative land supply surplus affects the <i>UITU</i> mainly through intermediate mechanisms that enhance the survival of low-end industries and disrupt the institutional environment. From these findings, this study not only puts forward specific policy recommendations for optimizing the allocation of land resources in China to promote <i>UITU</i>, but also discusses the implications for related research and practice in other countries.
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spelling doaj.art-ae6a06fed6d447d292a154c63a6444542023-11-24T00:51:44ZengMDPI AGLand2073-445X2022-09-011110163010.3390/land11101630How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from ChinaShangui Peng0Jian Wang1Hao Sun2Zhengning Guo3School of Economics and Management, Shandong Agricultural University, Tai’an 271018, ChinaCollege of Public Adiministration, Nanjing Agricultural University, Nanjing 210095, ChinaCollege of Public Adiministration, Nanjing Agricultural University, Nanjing 210095, ChinaSchool of Economics and Management, Shandong Agricultural University, Tai’an 271018, ChinaIndustrial transformation and upgrading is a key variable for developing countries to become developed countries. In China’s institutional environment, the central government’s decisions regarding the spatial allocation of land resources cause a differentiation in the evolution of industrial structures and formats among regions, generating significant impacts on urban industrial transformation and upgrading (<i>UITU</i>), with important policy implications. Using panel data from 276 prefecture-level cities in China from 2007 to 2019, this study constructs a spatial panel econometric model and a mediating effect model to reveal how land spatial misallocation (<i>LSM</i>) affects <i>UITU</i>. The results show that, <i>LSM</i> is not conducive to <i>UITU</i>, and this adverse effect is greater in cities with a relative land supply shortage than in cities with a relative land supply surplus. Further research finds that the <i>LSM</i> caused by the relative land supply shortage affects the <i>UITU</i> mainly through intermediate mechanisms that crowd out the investments and financing for real industries and inhibit residents’ demand and innovation, and the <i>LSM</i> caused by the relative land supply surplus affects the <i>UITU</i> mainly through intermediate mechanisms that enhance the survival of low-end industries and disrupt the institutional environment. From these findings, this study not only puts forward specific policy recommendations for optimizing the allocation of land resources in China to promote <i>UITU</i>, but also discusses the implications for related research and practice in other countries.https://www.mdpi.com/2073-445X/11/10/1630land managementland economyland usespatial misallocationindustrial transformation and upgradingimpact
spellingShingle Shangui Peng
Jian Wang
Hao Sun
Zhengning Guo
How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China
Land
land management
land economy
land use
spatial misallocation
industrial transformation and upgrading
impact
title How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China
title_full How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China
title_fullStr How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China
title_full_unstemmed How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China
title_short How Does the Spatial Misallocation of Land Resources Affect Urban Industrial Transformation and Upgrading? Evidence from China
title_sort how does the spatial misallocation of land resources affect urban industrial transformation and upgrading evidence from china
topic land management
land economy
land use
spatial misallocation
industrial transformation and upgrading
impact
url https://www.mdpi.com/2073-445X/11/10/1630
work_keys_str_mv AT shanguipeng howdoesthespatialmisallocationoflandresourcesaffecturbanindustrialtransformationandupgradingevidencefromchina
AT jianwang howdoesthespatialmisallocationoflandresourcesaffecturbanindustrialtransformationandupgradingevidencefromchina
AT haosun howdoesthespatialmisallocationoflandresourcesaffecturbanindustrialtransformationandupgradingevidencefromchina
AT zhengningguo howdoesthespatialmisallocationoflandresourcesaffecturbanindustrialtransformationandupgradingevidencefromchina