Land use tournaments and urban green total factor productivity: Evidence from the reform in China

Hongliang Sun, Jie Chen, Yanbo Wu and Youmeng Wu

Economic Analysis and Policy, 2025, vol. 86, issue C, 794-811

Abstract: Previous studies have highlighted the adverse impact of land misallocation on economic development, but few have explored how such mismatches can be alleviated. The main purpose of this study is to analyze the impact of the "Heroes Ranked by Per Mu Yield" reform (HPR)—an innovative governance model for land-use tournaments led by the local governments in China—on urban green total factor productivity (UGTFP). Using data from 41 cities in the Yangtze River Delta (YRD) region from 2003 to 2020, we employ staggered difference-in-differences (SDID) and difference-in-difference-in-differences (DDD) models to empirically assess the policy's effects and heterogeneity. Our findings show that the HPR significantly enhances UGTFP, especially in cities with weaker technological foundations, lower openness, and stronger government economic intervention. Additionally, the effect of the HPR is moderated by urban industrial structure and government competitiveness. Analysis of political texts reveals that the intensity of implementation and assessment also influences the reform's effectiveness. This study provides theoretical explanations and empirical evidence for optimizing the allocation of land resources, as well as policy recommendations for promoting green, high-quality urban development in China.

Keywords: Land use tournaments; Land misallocation; “Heroes Ranked by Per Mu Yield” reform; Urban green total factor productivity; Yangtze River Delta in China (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:86:y:2025:i:c:p:794-811

DOI: 10.1016/j.eap.2025.04.002

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