Relationship Between Land Development And Industrial Upgrading

The theory of Economic Growth has gained a remarkable progress in the last century. From the Classical economics to the newly-emerged New economic geography, various driven factors of economic growth such as labor, capital, technology and institution have been discovered——all contributed to the prosperity of the theory of Economic Growth. However, most of the related theories and empirical studies have focused on the developed countries and regions. The developing and under-developed region has long been marginalized, if not ignored at all.To those countries, the primary task is how to kick a start with the primitive accumulation of capitals, specifically, for China, a country in its own journey of economic transaction. Inevitably, such primitive capital accumulation is largely relied on the urbanization which is essentially centered on the large urban areas where the foreign capital tents to land on at the first place. Due to its spatial immobility, land became the only bulk resource that can be controlled by the local players. It is different to the developed countries, their capital accumulations are no longer depended on the land resource; whereas to China, the land exploitation is essential to its economic development and plays important roles in regional industrial upgrading.Since the onset of reform, slogans such as’Development is of overriding importance’have caused a dramatic change in China’s urban area. However, due to the system of tax distribution and rapid urbanization, the economic growth in China is fundamentally different from western countries. The astonishing mystery of Chinese rapid development could be largely attributed to the fundamental revolution of land marketization. Therefore, it is necessary to examine the relationship between urbanization, urban land expansion and industry upgrading under the context of globalization. The’Shierwu’planning clearly state that:industry transformation and upgrading is the key of accelerating the transformation of the pattern of economic development, the fundamental requirement of China’s new industrialization, and the necessary road to an industrial power. Meanwhile, the industrial structural adjustment is a significant factor for economic development. Thus, researches on land development, relationship between land development and industry upgrading are of great importance.In this paper, author will start from a review of the research on land development and land policy. The research area is in Shanghai, one of the earliest city enrolled in the marketization reform. To be more specific, this paper will focus on the relationship between land development and industry upgrading under the context of land market reform and rapid urbanization. Three research questions have been proposed:(1) since the onset of reform, what is the spatial and temporal process of Shanghai’s land development policy?(2) what are the main driven factors of Shanghai’s land development in different time period?(3) what is the relationship between land development and industry upgrading in Shanghai? What are the players? First three chapters will be the literature review, and the following four chapters are the empirical study part, the final chapter is the conclusion and discussion.First chapter is the introduction. The origins, context of this research will be firstly introduced and followed by the research questions, objectives and significance.The second chapter dedicated to define several important concepts and to introduce several basic theories. The concepts of land development and industry upgrading will be firstly laid out. Specifically, for industry upgrading, this paper will analysis the ratio, the added value, and driven factors between the three industries, and also review related theory such as traditional land development theory, Alonso rent model, and New Marxism spatial development theory.The third chapter is a review on the latest research on the land development under the context globalization. Author argued that theories such as population dividend, investment driven, and institution determination can only partially explain the China’s rapid economic development. These theories overlooked or ignored the fact that land is the most fundamental and effective capital for industrialization and urbanization in China, thus, land development shall be the key driven factor in economic development. The second part of this chapter is a review on the related research on the land development and economic development, specifically, focusing on the roles of different players in such mechanism. Eventually, according to the previous review, the theoretical framework and several research propositions shall be facilitated.The fourth chapter dedicated to examine the relationship between land development policy and industry upgrading in Shanghai. Author summarized the major characteristics of land development policies in different historical periods, and specifically analyzed the impacts of the dual track system. And then, using the Difference in Difference Models, author quantitatively analyzed the "Tuierjinshan (Retreat into three)" policy and "Jiaoquhua (Suburbanization)" land development policy.The fifth chapter investigates the spatial-temporal pattern of Shanghai’s urban land use change from1980to2010and examines the dynamic mechanism of such changes. Remotely sensed images from Land Sat TM and Spot Satellite were adopted and land use information for different periods of time was derived using supervised classification methods. Land use change detection was then performed based on both the1980Shanghai Land Use Atlas and remotely sensed information for different time periods.The sixth chapter focuses on the relationship between spatial evaluation and industry upgrading of land development in Shanghai. Author reviewed the process of spatial evolution and its impact on industry upgrading, specifically focuses on the impacts of land development on industry upgrading after80s. Author dedicatedly focused on "Tuierjinshan (Retreat into three)"policy in90s and the suburbanization after2000, and quantitatively analyzed relationship between land development and industry upgrading in these two periods.The seventh chapter is the empirical study on Shanghai International Auto City. Using the interview data, author analyzed the land development and industry ungrafting from a micro perspective. Author adopted an evolutionary perspective, focused on how the different players such as government, developers, and land users perform in the game of land development and industry upgrading.The eighth chapter is the conclusion and discussion. Some inadequacy and potential of the future research have been fully discussed. There are several contributions of this research to both the academic theory and policy making process:(1) Theoretically, rather than the solo perspective which focused on government, this research proposed a mechanism which includes government, developers, land users and institutions, and attempted to analyze them under a dynamic perspective.(2) Methodologically, this research combines different spatial and temporal scales and also combines micro and macro franchises. Specifically, this research adopted a Difference in Difference Models and a Geographically Weighted Regression Model which are very rare in related studies.(3) Practically, using the specific case, this research illustrated the positive impact of land development. This endeavor offsets the impacts of previous studies which normally held a negative evaluation on land finance. This could be served as a valuable reference for further urban planning and optimization.