Does Economic Agglomeration Lead to Efficient Rural to Urban Land Conversion? An Examination of China’s Metropolitan Area Development Strategy

Urbanization involves expansion of the amount of land covered by urban uses. Rural to urban land conversion (RULC) can satisfy demand for the additional space that growing cities require. However, there can be negative consequences, such as the loss of productive agricultural land and/or the destruction of natural habitats. Considerable interest therefore exists among policy makers and researchers regarding how the efficiency of RULC can be maximized. We used the Gini index and a data envelopment analysis to quantify the relationship between RULC and economic development for 17 metropolitan areas in China. We did this from two perspectives: (i) coordination; and (ii) efficiency. We found that economic agglomeration fosters the coordination of the amount of rural land that is allocated to be converted to urban uses. Similarly, economic agglomeration increases the efficiency of RULC in terms of the processes of socio-economic production. Through production technology innovation and readjustment in the scale of input factors, the productive efficiency of RULC can be promoted. Our findings suggest a need to strictly limit the amount of RULC, design differential land management policies according to location and development level, and adjust RULC allocation between different cities. Further, in harnessing the potential of intensive urban land use and restructuring, production factors, including land, can be enhanced through technological innovation. Research presented in this paper provides insights for areas of the world which are yet to undergo the rapid urbanization that China has experienced, but where it is projected to occur over the coming decades.