Land Prices and Intracountry Industrial Relocation in China

Gene Chang, Changliu Jiang, Kathryn Chang and Bhuiyan Alam

Chinese Economy, 2013, vol. 46, issue 2, 54-73

Abstract: This article investigates the major role of high land prices in the current massive intracountry industrial relocation from coastal to inland areas in China. A conceptual model is developed to explore the causalities of urban expansion, land prices, and coastal-to-inland business relocation. It demonstrates that relocation is mainly driven by high land prices resulting from urban expansion. Research is based on in-depth field studies of several representative relocated firms in the Yangtze Delta area. The findings derived from the case studies support the theoretical model and empirically validate the hypothesis.

Date: 2013
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