Has the Urban Agglomeration Policy Eased Competition for Industrial Land Prices? -Empirical Evidence from 19 Urban Agglomerations in China

Abstract

Abstract: Price competition for industrial land transfers is a typical feature of horizontal competition among local governments in China. The implementation of the urban agglomerations' development strategy has adjusted the competitive incentives of local governments at the cross-administrative level and reshaped their industrial land granting behavior. This paper investigates the impact of urban agglomeration approvals on industrial land price competition using panel data from 2007 to 2020 for 281 prefecture-level and above cities across China. The results are as follows. (1) Benchmark regressions find that urban agglomeration approvals mitigate industrial land grant price competition among local governments under the geographic proximity setting, and the estimation results remain robust after changing the proxy variables, urban agglomeration approval time, and spatial weight matrix. (2) The path analysis finds that the administrative and market dividends generated by the urban agglomeration approvals can be manifested as a significant increase in the entropy of manufacturing locations and the share of industrial enterprises in the urban agglomeration and a reduction in the willingness of local governments to engage in land price competition. (3) Expanded analysis reveals that the conditions for industrial land price competition among cities with similar economic development are the existence of geographical proximity or the same provincial administrative division; at the same time, urban agglomeration approvals have the greatest effect on mitigating industrial land price competition among cities with similar economic development in the province. This paper argues that centralizing the authority of urban cluster granting in the central government is an important policy tool to reasonably regulate the incentives of competition and cooperation among local governments.

Key words: urban agglomeration, industrial land price competition, two-regime spatial panel Durbin model

Huang Zhiji, Shi Tao, He Canfei. Has the Urban Agglomeration Policy Eased Competition for Industrial Land Prices? -Empirical Evidence from 19 Urban Agglomerations in China[J]. Management Review, 2025, 37(5): 17-29.

References

[1] Tiebout C. M. A Pure Theory of Local Expenditures[J]. Journal of Political Economy, 1956,64(5):416-424
[2] 龙小宁,朱艳丽,蔡伟贤,等. 基于空间计量模型的中国县级政府间税收竞争的实证分析[J]. 经济研究, 2014,49(8): 41-53 Long X. N., Zhu Y. L., Cai W. X., et al. An Empirical Analysis of Spatial Tax Competition among Chinese Counties Based on Spatial Econometric Models[J]. Economic Research Journal, 2014,49(8):41-53
[3] 谢贞发,范子英. 中国式分税制、中央税收征管权集中与税收竞争[J]. 经济研究, 2015,50(4):92-106 Xie Z. F., Fan Z. Y. Chinese-style Tax-sharing System, Tax Collection Centralization and Tax Competition[J]. Economic Research Journal, 2015,50(4):92-106
[4] 黄思明. 中国式财政分权、群组效应与经济增长[J]. 管理评论, 2019,31(8):250-259 Huang S. M. Chinese Fiscal Decentralization, Group Effect and Economic Growth[J]. Management Review, 2019,31(8): 250-259
[5] 范子英. 土地财政的根源:财政压力还是投资冲动[J]. 中国工业经济, 2015,(6):18-31 Fan Z. Y. The Source of Land Finance:Fiscal Pressure or Investment Incentives[J]. China Industrial Economics, 2015,(6): 18-31
[6] 田文佳,余靖雯,龚六堂. 晋升激励与工业用地出让价格——基于断点回归方法的研究[J]. 经济研究, 2019,54(10): 89-105 Tian W. J., Yu J. W., Gong L. T. Promotion Incentives and Industrial Land Leasing Prices:A Regression Discontinuity Design [J]. Economic Research Journal, 2019,54(10):89-105
[7] 田文佳,张庆华,龚六堂. 土地引资促进地区工业发展了吗?——-基于土地、企业匹配数据的研究[J]. 经济学(季刊), 2020,20(1):33-60 Tian W. J., Zhang Q. H., Gong L. T. Do Land Subsidies Promote Local Industrial Development? -Based on Land, Firm Matched Data[J]. China Economic Quarterly, 2020,20(1):33-60
[8] 刘守英,熊雪锋,章永辉,等. 土地制度与中国发展模式[J]. 中国工业经济, 2022,(1):34-53 Liu S. Y., Xiong X. F., Zhang Y. H., et al. Land System and China's Development Mode[J]. China Industrial Economics, 2022,(1):34-53
[9] 金刚,沈坤荣,李剑. "以地谋发展"模式的跨界污染后果[J]. 中国工业经济, 2022,(3):95-113 Jin G., Shen K. R., Li J. The Transboundary Pollution Consequences of Land-driven Development Mode[J]. China Industrial Economics, 2022,(3):95-113
[10] 刘守英,王志锋,张维凡,等. "以地谋发展" 模式的衰竭——基于门槛回归模型的实证研究[J]. 管理世界, 2020,36(6): 80-92 Liu S. Y., Wang Z. F., Zhang W. F., et al. The Exhaustion of China's "Land-driven Development" Mode:An Analysis Based on Threshold Regression[J]. Journal of Management World, 2020,36(6):80-92
[11] 李永友. 转移支付与地方政府间财政竞争[J]. 中国社会科学, 2015(10):114-133 Li Y. Y. Transfer Payments and Fiscal Competition between Local Governments[J]. Social Sciences in China, 2015(10): 114-133
[12] Lyu B., Ma G., Zhan J. The Trade-off between Risk and Incentives in Fiscal Federalism:Evidence from China[J]. Journal of Comparative Economics, 2022,50(4):1019-1035
[13] Kikuchi Y., Tamai T. Tax Competition, Unemployment, and Intergovernmental Transfers[J]. International Tax and Public Finance, 2019,26:899-918
[14] Bell D., Sas W., Houston J. Starting from Scratch? A New Approach to Subnational Public Finance[J]. Regional Studies, 2021, 55(4):617-629
[15] Buettner T., Krause M. Fiscal Equalization as a Driver of Tax Increases:Empirical Evidence from Germany[J]. International Tax and Public Finance, 2021,28(1):90-112
[16] Bathelt H., Malmberg A., Maskell P. Clusters and Knowledge:Local Buzz, Global Pipelines and the Process of Knowledge Creation[J]. Progress in Human Geography, 2004,28(1):31-56
[17] 赵勇,魏后凯. 政府干预、城市群空间功能分工与地区差距——兼论中国区域政策的有效性[J]. 管理世界, 2015,31(8): 14-29 Zhao Y., Wei H. K. The Government Intervention, the Division of Labor of the Function of the Space of the City Group, and the Difference in District:On the Effectiveness of Regional Policy in China[J]. Journal of Management World, 2015,31(8):14-29
[18] 赵娜,王博,刘燕. 城市群、集聚效应与"投资潮涌"——基于中国20个城市群的实证研究[J]. 中国工业经济, 2017, (11):81-99 Zhao N., Wang B., Liu Y. Urban Cluster, Agglomeration Effect and "Investment Wave Phenomenon"-Empirical Analysis Based on 20 Urban Clusters in China[J]. China Industrial Economics, 2017,(11):81-99
[19] Xu C. The Fundamental Institutions of China's Reforms and Development[J]. Journal of Economic Literature, 2011,49(4): 1076-1151
[20] Fang C., Yu D. Urban Agglomeration:An Evolving Concept of an Emerging Phenomenon[J]. Landscape and Urban Planning, 2017,162:126-136
[21] Li L., Ma S., Zheng Y., et al. Integrated Regional Development:Comparison of Urban Agglomeration Policies in China[J]. Land Use Policy, 2022,114:105939
[22] Lu S., Wang H. Regional Integration by Administrative Division Adjustment:City-County Consolidation and Layout of Land Development in China[J]. Journal of Urban Planning and Development, 2023,149(3):04023017
[23] 原倩. 城市群是否能够促进城市发展[J]. 世界经济, 2016,39(9):99-123 Yuan Q. Do Urban Clusters Promote the Development of Cities?[J]. The Journal of World Economy, 2016,39(9):99-123
[24] Su S., Liu Z., Xu Y., et al. China's Megaregion Policy:Performance Evaluation Framework, Empirical Findings and Implications for Spatial Polycentric Governance[J]. Land Use Policy, 2017,63:1-19
[25] 唐为. 要素市场一体化与城市群经济的发展——基于微观企业数据的分析[J]. 经济学(季刊), 2021,21(1):1-22 Tang W. Factor Market Integration and the Development of China's Urban Clusters-An Analysis Based on Micro-firm Dataset [J]. China Economic Quarterly, 2021,21(1):1-22
[26] 薛永刚. 城市群经济高质量发展空间收敛、动态演进以及创新影响研究——"珠三角" 和"长三角" 的对比分析[J]. 管理评论, 2022,34(12):131-145 Xue Y. G. Research on Spatial Convergence, Dynamic Evolution and Innovation Impact of High Quality Economic Development in Urban Agglomeration-A Comparative Analysis of Pearl River Delta and Yangtze River Delta[J]. Management Review, 2022,34(12):131-145
[27] 王文彬,廖恒. 新型基础设施如何影响粤港澳大湾区经济一体化发展——基于空间溢出效应的视角[J]. 财经科学, 2022(8):93-105 Wang W. B., Liao H. How will the New Infrastructure Affect the Economic Integration of the Guangdong-Hong Kong-Macao Greater Bay Area-From the Perspective of Spatial Spillover Effect[J]. Finance & Economics, 2022(8):93-105
[28] 刘依凡,于津平,杨继军. 城市群空间集聚与中国制造业企业全球价值链地位[J]. 经济评论, 2023(4):3-16 Liu Y. F., Yu J. P., Yang J. J. Urban Agglomeration and the GVC Status of Chinese Manufacturing Enterprises[J]. Economic Review, 2023(4):3-16
[29] 魏后凯. 中国城镇化进程中两极化倾向与规模格局重构[J]. 中国工业经济, 2014,(3):18-30 Wei H. K. Polarization Trend and Optimization of Size Distribution in China's Urbanization Process[J]. China Industrial Economics, 2014,(3):18-30
[30] 龚锋,陶鹏,潘星宇. 城市群对地方税收竞争的影响——来自两区制面板空间杜宾模型的证据[J]. 财政研究, 2021,(4): 17-33 Gong F., Tao P., Pan X. Y. The Influence of Urban Agglomeration on Local Tax Competition-Evidence from a Two-Regime Spatial Durbin Model[J]. Public Finance Research, 2021,(4):17-33
[31] 章韬,申洋. 企业进入、税收与集聚外部性——基于产业关联的实证研究[J]. 经济学(季刊), 2020,20(3):825-846 Zhang T., Shen Y. Firm Entry, Tax and Agglomeration Economies-Empirical Study Based on Industrial Linkages[J]. China Economic Quarterly, 2020,20(3):825-846
[32] 王雨飞,倪鹏飞. 高速铁路影响下的经济增长溢出与区域空间优化[J]. 中国工业经济, 2016(2):21-36 Wang Y. F., Ni P. F. Economic Growth Spillover and Spatial Optimization of High-speed Railway[J]. China Industrial Economics, 2016(2):21-36
[33] 李婉红,刘芳,刘天森. 国家高新区提升了城市创新效率吗?——-基于空间集聚调节效应的实证检验[J]. 管理评论, 2022,34(5):93-108 Li W. H., Liu F., Liu T. S. Can National High-tech Zones Improve the Urban Innovation Efficiency? -An Empirical Test Based on the Effect of Spatial Agglomeration Regulation[J]. Management Review, 2022,34(5):93-108
[34] Zhang L., He X., Jia Z. Industrial Agglomeration, Public Services and City Size:Evidence from 286 Cities in China[J]. Land Use Policy, 2023,131:106758
[35] 钱学锋,黄玖立,黄云湖. 地方政府对集聚租征税了吗?——-基于中国地级市企业微观数据的经验研究[J]. 管理世界, 2012,28(2):19-29 Qian X. F., Huang J. L., Huang Y. H. Have Local Governments Taxed Agglomeration Rents?[J]. Journal of Management World, 2012,28(2):19-29
[36] Elhorst J. P., Fréret S. Evidence of Political Yardstick Competition in France Using a Two-Regime Spatial Durbin Model with Fixed Effects[J]. Journal of Regional Science, 2009,49(5):931-951
[37] 刁姝杰,匡海波,李泽,等. 港口发展对经济开放的空间溢出效应研究——基于两区制空间Durbin模型的实证分析[J]. 管理评论, 2021,33(1):54-67 Diao S. J., Kuang H. B., Li Z., et al. The Spatial Spillover Effect of Port Development on Economic Openness:Research Based on Two-Regime Spatial Durbin Model[J]. Management Review, 2021,33(1):54-67
[38] 伍骏骞,阮建青,徐广彤. 经济集聚、经济距离与农民增收:直接影响与空间溢出效应[J]. 经济学(季刊), 2017,17(1): 297-320 Wu N., Ruan J. Q., Xu G. T. Economies Agglomeration, Economies Distance, and Farmer's Income Growth:A Study on Direct and Spillover Effects[J]. China Economic Quarterly, 2017,17(1):297-320