Research On The Indirect Transmission Mechanism Of Land Finance To Industrial Upgrading

As the carrier of economic development and the important regulation and control tool of the government,land can significantly affect the process of industrial upgrading.In the long term,local governments have lowered the price of industrial land and increased the price of commercial and residential land to increase fiscal revenue and promote economic growth,which may lead to the result that the secondary industry hits a lofty percentage of GDP and the third industry has less developed.However,there are still few studies about how the land finance affects the upgrading of industries indirectly.Using the prefecture-level city data from 2004 to 2016,this paper using the mediation effect test finds that not only does land finance affect industrial upgrading directly by controlling the land price and transfer structure,but it affects the upgrading indirectly by expanding the infrastructure and promoting the rise of housing prices.On the one hand,land finance can improve the level of infrastructure,which may accelerate enterprise innovation and promote industrial upgrading and transformation by reducing the production cost of enterprises,speeding up the flow of production factors,promoting industrial agglomeration,eliminating market segmentation and promoting market competition.On the other hand,land finance will also promote housing prices and crowd out innovative enterprise financing,which may lead to the excessive development of low-level industries and the insufficient development of high-tech industries,and which may also raise the production costs that does harm to service industry development and industrial upgrading and that tempts enterprises to deviate from the main business to reduce innovation investment.By the sub-regional comparison,it has been found that the higher the housing price,the stronger the inhibition of land finance on industrial upgrading.This paper takes housing prices as a threshold variable and finds that there are two thresholds for land finance and industrial upgrading.When the housing price is low,it has less inhibitory effect on industrial upgrading,the mediation effect of land finance on industrial upgrading is positive,and land finance has a promoting effect on industrial upgrading.With the housing prices rising,their suppression effect on industrial upgrading is increasing and is almost equivalent to the promotion effect of infrastructure,which causes the result that the mediating effect of land finance on industrial upgrading is close to zero,and the impact of land finance on industrial upgrading is small.As housing prices continue to increase,their suppression effect on industrial upgrading continues to increase and will exceed the promotion effect of infrastructure,the mediating effect of land finance on industrial upgrading is negative,and land finance will hinder industrial upgrading.Therefore,the government should reduce the scale of land finance,reduce its dependence on land finance and actively introduce measures to restrain the rise of housing prices and improve the efficiency of land finance.