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China's Construction Land Expansion and Economic Growth: A Capital‐output Ratio Based Analysis

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  • Huizhong Li
  • Feng Yin
  • Jialun Li

Abstract

Since 2003, the Chinese Government has been using land policy as an important macroeconomic policy. The present paper analyzes the impact of the expansion of construction land on economic growth in terms of the capital‐output ratio. Using provincial panel data for China from 1999 to 2005, we conclude that the excess expansion of China's construction land led to an increase in the capital‐output ratio. Therefore, expanding construction land has made little contribution to economic growth. This paper argues that contractionary land policy does not deter high economic growth, and is a necessary condition for a sustainable economic growth.

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  • Huizhong Li & Feng Yin & Jialun Li, 2008. "China's Construction Land Expansion and Economic Growth: A Capital‐output Ratio Based Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(6), pages 46-62, November.
    • Handle: RePEc:bla:chinae:v:16:y:2008:i:6:p:46-62
    DOI: 10.1111/j.1749-124X.2008.00137.x
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    Cited by:

    1. Dong Ouyang & Xigang Zhu & Xingguang Liu & Renfei He & Qian Wan, 2021. "Spatial Differentiation and Driving Factor Analysis of Urban Construction Land Change in County-Level City of Guangxi, China," Land, MDPI, vol. 10(7), pages 1-21, June.
    2. Dongchuan Wang & Mengqin Sang & Yong Huang & Liding Chen & Xiangwang Wei & Wengang Chen & Feicui Wang & Jinya Liu & Bingxu Hu, 2019. "Trajectory analysis of agricultural lands occupation and its decoupling relationships with the growth rate of non-agricultural GDP in the Jing-Jin-Tang region, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(2), pages 799-815, April.

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