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Rethinking the Contribution of Land Element to Urban Economic Growth: Evidence from 30 Provinces in China

Author

Listed:
  • Guoliang Xu

    (School of Tourism and Urban Management, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Xiaonan Yin

    (School of Tourism and Urban Management, Jiangxi University of Finance and Economics, Nanchang 330013, China)

  • Guangdong Wu

    (School of Public Policy and Administration, Chongqing University, Chongqing 430044, China)

  • Ning Gao

    (Shandong Jianzhu University Design Group Co., Ltd., Jinan 250014, China)

Abstract

In China, disputes regarding the benefits and drawbacks of land finance have been heated, but the role of land in urban economic growth has received insufficient attention, particularly on a macro scale. This research used the Cobb–Douglas production function model to investigate the role of land in urban economic growth. Then, we conducted an empirical test using panel data from 30 provinces from 2000 to 2019, with the goal of revealing the role of land in urban growth and spatio-temporal inequalities in China. Furthermore, to find the spatial steady-state level of land contributions, σ convergence, absolute β convergence, and condition β convergence tests were applied. The results show that: (1) China’s urban economic development was influenced by the combined element of land, capital, and labor; (2) the contribution of land to China’s urban economy experienced a turning point during the “12th Five-Year Plan”; (3) the spatio-temporal convergence of the contribution of land showed convergence in the east but nonconvergence in the central and western regions; and (4) β convergence demonstrated convergence in eastern, central, and western China. Given the complex and turbulent international political and economic context, the Chinese government should think about how to foster continuous energy by supporting land-supply policies that are adapted to local needs.

Suggested Citation

  • Guoliang Xu & Xiaonan Yin & Guangdong Wu & Ning Gao, 2022. "Rethinking the Contribution of Land Element to Urban Economic Growth: Evidence from 30 Provinces in China," Land, MDPI, vol. 11(6), pages 1-16, May.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:6:p:801-:d:826636
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