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Industrial Land Policy and Economic Complexity of Chinese Cities

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

No 1916, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

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 specializations into more complex industries. In China, local governments tend to use industrial land subsidy as a policy tool to attract new firms in desired industries and promote industrial growth. However, relatively little is known about the impact of this policy tool on the economic complexity of Chinese cities. Drawing upon the recent literature on the principle of relatedness and economic complexity, this paper investigates the impact of this industrial land policy (ILP) on the diversification of Chinese cities into more complex industries. The empirical results support our hypothesis that those cities providing higher intensity of land subsidy are more likely to enter new industries, in particular the most complex ones.

Keywords: Economic Complexity; Industry Complexity; Industrial Land Policy; Industrial Diversification (search for similar items in EconPapers)
JEL-codes: O25 O38 R11 (search for similar items in EconPapers)
Date: 2019-05, Revised 2019-05
New Economics Papers: this item is included in nep-cna, nep-geo, nep-tid, nep-tra and nep-ure
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