Industrial land policy and economic complexity of Chinese Cities

Zhaoyingzi Dong, Yingcheng Li, Pierre-Alexandre Balland and Siqi Zheng

Industry and Innovation, 2022, vol. 29, issue 3, 367-395

Abstract: Economies producing more complex products tend to be wealthier and grow more quickly. Therefore, a key issue for cities around the world is to develop new specialisations into more complex industries. In China, local governments tend to use urban land allocation as a tool to attract new firms from specific industries and promote industrial growth. However, relatively little is known about how this policy tool is related to the economic complexity of Chinese cities. Drawing upon the recent literature on the principle of relatedness and economic complexity, this paper investigates the relationship between industrial land policy (ILP) and the diversification of Chinese cities into more complex industries. The empirical results support our hypothesis that cities providing higher intensity of land subsidy are more likely to enter new industries and the more complex ones in particular.

Date: 2022
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Working Paper: Industrial Land Policy and Economic Complexity of Chinese Cities (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:taf:indinn:v:29:y:2022:i:3:p:367-395

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DOI: 10.1080/13662716.2021.1990022

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