Land Resource Allocation and Economic Development Quality: Industrial Land Price and Total Factor Productivity
- ZHANG Li, CHENG Kewei & ZHAO Jingtao
- ZHANG Li (Sun Yat-sen University, 519082)CHENG Kewei (Shanghai University of Finance and Economics, 200433)ZHAO Jingtao (Fudan University, 200433)
Under the new situation of enhancing the quality of economic development and increasing land resource constraints, it is important to understand how to optimize the allocation of resources and improve the quality of economic development through policy guidance. In this paper, we use Melitz (2003) Market withdrawal model of productivity heterogeneity enterprises as the theoretical basis and analyze the relationship between industrial land price and enterprises' TFP empirically with data of prefecture-level cities and individual industrial enterprises from 2000 to 2007. The empirical results show that the rise of industrial land price can improve enterprises' TFP level, and the selection effect exists. Besides, the government's negative distortion of industrial land price can reduce local enterprises' TFP level. Heterogeneity analysis shows that the selection effect works more strongly on non-state-owned enterprises than on stateowned enterprises, and more on small enterprises than on large enterprises. The analysis of intermediary mechanism shows that the increase of industrial land price can affect TFP by affecting the site selection of enterprises with higher TFP level, but it cannot promote the exit of enterprises with lower TFP level. Our conclusions can not only evaluate the once-prevailing “land investment” policy, but also provide policy suggestions to promote the “evaluation based on the yield per mu of land” at present.
- Industrial Land Price, Total Factor Productivity, Selection Effect