2019
DOI: 10.1111/cwe.12288
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Regional Competition in China under the Price Distortion of Construction Land: A Study Based on a Two‐regime Spatial Durbin Model

Abstract: This study examines regional competition in China by considering the spatial correlation and spillover effect of construction land price distortion using a two-regime Spatial Durbin Model to investigate the patterns and trends of the competition between 285 cities in China from 2006 to 2015. The study finds: (i) price distortion of construction land is a common phenomenon but the distortion index generally shows a declining trend; (ii) regional competition through construction land price distortion shows a wea… Show more

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Cited by 16 publications
(8 citation statements)
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“…Amid the transformation and upgrading of the industrial structure, medium-sized cities have become the main regions undertaking industrial transfer from larger cities, causing medium-sized cities to have internal economic development needs for industrial support facilities and infrastructure to accommodate industrial transfer. Moreover, the governments of most medium-sized cities have competitive relationships in the process of undertaking industrial transfer, making lower industrial land price the main strategy for attracting industrial transfer and investment (Han and Kung 2015 ; Liu and Geng 2019 ), leading to a significant increase in local AP in the LRM of medium-sized cities.…”
Section: Empirical Results and Discussionmentioning
confidence: 99%
“…Amid the transformation and upgrading of the industrial structure, medium-sized cities have become the main regions undertaking industrial transfer from larger cities, causing medium-sized cities to have internal economic development needs for industrial support facilities and infrastructure to accommodate industrial transfer. Moreover, the governments of most medium-sized cities have competitive relationships in the process of undertaking industrial transfer, making lower industrial land price the main strategy for attracting industrial transfer and investment (Han and Kung 2015 ; Liu and Geng 2019 ), leading to a significant increase in local AP in the LRM of medium-sized cities.…”
Section: Empirical Results and Discussionmentioning
confidence: 99%
“…Besides, more efforts should be exerted on research and development of advanced materials, product innovation, and new models, and basic research should be reinforced to improve the international market competitiveness. Thirdly, fiscal and tax reform should be implemented, new measures should be launched to support Small and Medium-sized Enterprises, financial reform should be deepened, and the marketization of interest rates and exchange rates should be promoted ( Liu and Hong, 2019 ). Especially, the development of small and medium-sized financial institutions, such as private banks, should be accelerated, and specifically, the capital market should be expanded, price reform should be promoted, government pricing should be minimized, while price liberalization should be maximized.…”
Section: Discussion and Suggestionsmentioning
confidence: 99%
“…In China, the price of land purchased by enterprises from the government is less than half of the average price of residential houses., in that the government sells the land use right at a low price to promote enterprises to carry out production and construction. During the term of land use, the value created by the use of land by enterprises is far greater than the land cost [ 31 , 32 ]. The government should reduce its intervention in the land market to make it more open for competition, so as to improve the efficiency of land use [ 33 , 34 ].…”
Section: Empirical Analysismentioning
confidence: 99%