The Analysis Of The Impact Of Governmental Land Remising On The City Industrial Agglomeration

Land,an important production factor and a basic carrier to support regional economic,is playing a significant role in promoting city industrial agglomeration and optimizing regional economic development.Land factor has become a fundmental tool for local government to drive local economy,especially urban economy.Land-transfer policy eventually become the most important economic rights for local governments as a result of the reform of tax sharing system in 1994 and the later popularized Land Finance after 2000.Local governments regard the land transferring fees as the most reliable and flexible income.Moreover,to optimize the utility of land transferring is one of main objectives for decision-making in local government.To better understand China's economic development,industrial agglomeration and other relevant issues,a further investigation into land factor is essential.This paper mainly investigates two behaviors of the government land concessions and discuss how they affect the city industrial agglomeration.The theoretical analysis indicates that:for local government,the optimal policy of land concessions is setting a lower remising price for industrial land while a higher remising price for commercial and residential land,in order to reducing the cost of industrial agglomeration and increasing fiscal revenue for the local government;ultimately the optimal policy will both significantly attract enterprise investment and boost regional economic development.Empirical analysis based on the data of more than 257 prefecture-level cities from the year 2005 to 2014 confirm fundamental validity to the above optimal policy of land concessions:a lower remising price for industrial land while a higher remising price for commercial and residential land contribute to city industrial agglomeration.However,when the empirical analysis are separately conducted based on different regions or city clusters rather than all the samples as a whole,the paper finds that a lower remising price for industrial land while a higher remising price for commercial and residential land exert little positive influence on developed cities and poor cities or even do harm to their regional economic development.But it does benefit for the ordinary cities.To verify the accuracy of the theory and hypothesis within the range of china,the paper also selects the number of consumer service's employees which include the people of real estate accounting for a proportion of the total employment,which is closely related to worker to process a robustness analysis test in reverse.The empirical analysis indicates that a higher remising price for commercial and residential land contribute to city industrial agglomeration while a higher remising price for industrial land hamper the city industrial agglomeration within the range of china,verifying the accuracy of the theory and hypothesis.Although a lower remising price for industrial land while a higher remising price for commercial and residential land contribute to city industrial agglomeration within the range of China,the diffence between each other need make different land policy.