Research On The Influence Of Local Industrial Policies On Industrial Development

The rapid growth of China’s economy is closely related to industrial policies,which affect the development of local economy by affecting the distribution of various factors.As an immovable special element,land distribution is more affected by industrial policies.Especially under China’s special land system,land distribution is more directly affected by government intervention than other elements.Therefore,it is necessary and realistic to research the influence of local industrial policies on local economic development and the role of land resource allocation.However,existing studies mainly discuss the impact of industrial policy on economic growth,and part of them discuss the effect of land resource allocation on productivity.few literatures put industrial policies,land resource allocation and total factor productivity into the same framework for research.Therefore,this thesis constructs the analysis framework of “Local industrial policy--Land resource allocation--Local productivity”.First of all,the core explanatory variable of local industrial policy is constructed according to the provincial five-year plan.It is found that enterprises encouraged by policies can significantly improve their productivity(TFP),but this effect is not transmitted to the industry level.Local industrial policies cannot significantly improve the productivity of local encouraged industries and even have negative effects.Secondly,land transfer data is introduced to explore the role of land resource allocation in the effects of policy.It is found that local industrial policies significantly affect the allocation of land resources.However,the encouraged industries that get more land supply do not show the improvement of TFP,which indicates that local industrial policies distort the allocation of land resources among industries.More inefficient firms in the encouraged industries gain access to new or additional land supply,which in turn negatively affects the TFP of the encouraged industries as a whole.Further,the industrial enterprise database and land transfer data were matched,and on this basis,the co-variance(OP covariance)method proposed by Olley and Pakes(1996)was adopted to measure the degree of land resource mismatch in urban industry dimension with the covariance between land area share and productivity.It is found that there is a certain degree of misallocation of land resources in different years,regions and industries,and the degree of land mismatch is more obvious in the industries encouraged by policies.Finally,according to the characteristics of the construction land quota system and the “bid and auction” system,the influence of the scarcity of land indicators and the marketization level on the guidance of local industrial policies on land resource allocation is discussed.It is found that local industrial policies can play a stronger guiding role in areas where land use indicators are relatively tight,and allocate more land resources to encouraged industries,which further intensifies land misallocation.However,the improvement of the marketization level of land transfer weakens the guiding role of local industrial policies in land transfer behavior,which can make the reasonable allocation of land resources to a certain extent.In summary,compared with previous studies,this thesis has made some progresses in the following three aspects:(1)In terms of research content,different from previous studies which mainly focused on single industrial policies,we gives a broader definition of local industrial policies,and discusses the mechanism of local industrial policies’ impact on local productivity from the perspective of land resource allocation;(2)In terms of data,this thesis adopts two micro-databases of industrial enterprise database and land transfer data,and matches them through enterprise names,making it possible to discuss the allocation of land resources based on enterprises;(3)Combined with the analysis of the land system,two indicators of land use index scarcity and land market marketization level were constructed to represent the two characteristics of the land system,and the heterogeneity of the influence of local industrial policies on land resource allocation was deeply discussed.