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LAND AND URBAN ECONOMIC GROWTH IN CHINA*
Author(s) -
Ding Chengri,
Lichtenberg Erik
Publication year - 2011
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.2010.00686.x
Subject(s) - unrest , china , constraint (computer aided design) , economics , investment (military) , government (linguistics) , econometric model , value (mathematics) , natural resource economics , economic geography , geography , econometrics , archaeology , mechanical engineering , linguistics , philosophy , engineering , machine learning , politics , political science , computer science , law
Land to accommodate urban development in China is provided through requisitions by government officials, suggesting that land availability may be a constraint on urban economic growth. An econometric model of urban GDP growth suggests that land has constrained economic growth in coastal areas but not elsewhere. Elasticities calculated from the estimated coefficients indicate that land availability has a larger proportional impact on economic growth than domestic and foreign investment, labor supply, and government spending. The estimated parameters provide evidence about arbitrage opportunities created by discrepancies between urban land value and compensation for requisitioned rural land, suggesting rural unrest associated with conversion of farmland to urban uses may have some economic roots.