How Does Land Development Promote China’s Urban Economic Growth? The Mediating Effect of Public Infrastructure

Xianwei Fan, Dan Zheng and Minjun Shi
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Xianwei Fan: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Dan Zheng: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
Minjun Shi: School of Economics, Renmin University of China, Beijing 100872, China

Sustainability, 2016, vol. 8, issue 3, 1-12

Abstract: Although substantial studies emphasized the close relationship among land development, public infrastructure, and urban economic growth, the mediating effect of public infrastructure remains unexplored. Using panel data of 253 prefecture-level Chinese cities from 1999 to 2012, we empirically conduct a mediating effect analysis to examine how land development promotes urban economic growth. It is found that land development has a positive impact on public infrastructure, whereas the construction of public infrastructure is positively related with urban economic growth. Therefore, land development exerts a positive influence on urban economic growth through one important mediator: public infrastructure. It is also found that the mediating effect of public infrastructure is partial. The estimation results are robust to various specifications and sensitivity analysis.

Keywords: land development; land revenue; public Infrastructure; urban economic growth; mediating effect (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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