Influence Of Industrial Land Price Distortion On The Optimization Of Industrial Structure

Since the reform and opening,China’s economic has grown rapidly,at the same time,the optimization of industrial structure has produced a marked effect,and the three industries have been developing vigorously,especially the the tertiary industry have been growing rapidly and become the economic mainstay.But there are many defects in industrial structure,especially the condition of secondary industry is the poorest,which is high energy-consuming,high polluting and transfers slowly.The main cause of these defects is the chronic industrial land price distortion.There is no doubt that under perfect market mechanism,factor price can reflect the scarcity of factors accurately,promoting the effective allocation of production factors between each department,but industrial land price distortion will affect the investment decisions of the producer,which will lead to many negative consequences such as distortion of allocation of production factors,low production efficiency in society and the process of optimization of industrial structure being blocked.Therefore,researching the mechanism of industrial land price distortion’s impact on optimization of industrial structure is of great significance for exploring the effective path of optimizing industrial structure and boosting China’s economy sustainably.Firstly,this paper states the theories about land price distortion and optimization of industrial structure from domestic and foreign scholars,and analyses the mechanism of industrial land price distortion’s impact on optimization of industrial structure theoretically.Secondly,this paper states the status quo and the causes of industrial land price distortion which is measured by set the marginal productivity of industrial land as a benchmark measure,and analyzes the current situation of optimization of industrial structure which includes rationalization of industrial structure that is measured by Theil index and sophistication of industrial structure that is measured by the layer coefficient of industrial structure.Thirdly,this paper dissects industrial land price distortion’s influence on the optimization of industrial structure empirically based on the panel data of 12 city in Jiangzhehu area from 2006 to 2015.Finally,this paper puts forward some suggestions about eliminating the industrial land price distortion and promoting the optimization of industrial structure to provide decision-making support for local governments based on above analysis and empirical results.In this paper,the main conclusions are as follows:(1)the theoretical analysis shows that the industrial land price distortion will lead to some untoward effects such as excessive investment,competitions between local governments,misallocation of resources,suppression of innovation and demand;(2)there are industrial land price distortions in mostly cities of Jiangzhehu region,and the distiortion is less in the cities which do better in optimization of industrial structure;(3)the local governments’ intentions of attracting investment and the cut-throat regional competitions cause industrial land price distortion;(4)the levels of optimization of industry structure which have been increased fast in recent years in the cities of Jiangzhehu region is high,but the gap between the cities which have been developing unevenly is great;(5)empirical study provides evidence which support the theoretical analysis.Based on the conclusions,this paper puts forward some corresponding policy suggestions:(1)changing the local government performance examination which is focus on GDP now to correct the behavioural biases of local government;(2)transfering the model of local economic development and making high-end industries become the economic mainstay;(3)coordinating regional development to avoid vicious competition between local governments;(4)promoting the reform of the land system to improve the efficiency of the intensive utilization of industrial land;(5)establishing the standard of the lowest price of industrial land which can be revised dynamically;(6)accelerating the reform of the land market,and establishing fair,just and open market environment.On the one hand,this paper enriches the researches in the field of how industrial land price distortion influence optimization of industrial structure which a few of existing studies refer to.On the other hand,in this age when it is necessary to promote marketization of industrial land and optimization of industrial structure,this paper aims at the two hot problems and analyses them together in order to provide helpful proposals about correcting industrial land price distortion and promoting optimization of industrial structure.