Research On The Economic Effects Of Chinese Local Governments Land Supply Behavior

Along with the rapid development of industrialization,the increasing demand of industrial land,land resource scarcity is increasingly prominent,the report of 19 th National Congress of the Communist Party of China put forward to improve the socialist market economic system,with emphasis on the elements of market-oriented allocation,strengthening factor price marketization reform.Although 2006 provisions of the state demand to take action to “bidding,auction and listing” to transfer industrial land,and the transaction price shall not be lower than the minimum standard price,however,under the fiscal decentralization system and the promotion and assessment mechanism of government officials,local government officials tend to attract investment through low-price land supply to ensure their performance in office,which results in the deviation of industrial land price from its actual value and distortion,Based on the policies and realistic background,this paper uses the data of industrial land price and related economic indicators of 105 large and medium-sized cities monitored by the ministry of land and resources from 2003 to 2015 to examine the impact of industrial land price distortion on the short-term growth and long-term development of regional economy,so as to examine the effect of local governments’ low-price land supply.Firstly,based on the price theory of land resources and regional economic growth theory,and combined with the policy evolution of the industrial land use in China and the development of local government institutional environment,analysis the price of local government behavior for the drivers,as well as its short-term economic growth effect and long-term growth quality problems.Then through summarizing and combing the existing research about low price for its proxy indicator of economic effect,and combining with theoretical analysis,the local government of low-priced behavior for the low price for the behavior of the definition of shortterm growth effect and long-term growth effect,and through statistical analysis,the local government in China low prices for to evaluate the status quo.From two aspects,short-term growth effect and long-term growth effect,using 105 major cities in 2003-2015,take the empirical test,and in order to make the results more reliable,long-term growth effect can be divided into two aspects of economic indicators and environmental indicators,more comprehensive analysis the effect of local governments’ low-priced behavior for of attracting capital.According to theoretical analysis and empirical test,this paper draw the following conclusions:(1)The empirical results in this study show that GDP growth rate,foreign investment,and government revenue are significantly negatively correlated with the industrial land price.This result proves that in a short period of time,the local government can reduce the industrial land prices to attract foreign investment,promote local economic growth,and expand government revenue.(2)The level of industrial specialization and the development of hightech and secondary industries are negatively correlated with the low-cost land supply behavior,and industrial pollution indicators and low prices for behavior show the significant positive correlation indicates.This result shows that low price for land supply by local governments lowers the industrial land prices compared with the reasonable land price level,which is not conducive to regional industrial specialization,upgrading of industrial structure and intensify environmental pollution.However,the optimization of industrial structure,upgrading of industrial specialization,and environmental protection are the important factors that affect the long-term economic growth,it is also an important way to achieve high-quality and sustainable economic development.Therefore,low-price land supply is not conducive to the long-term growth of regional economy.