Financial Pressure, Economic Stimulus and Land Transfer with the Aim of Attracting Investment—Empirical Evidence Based on Micro Data of Industrial Land
Year: 2020
Type: article
Abstract: Although China's local governments are facing greater fi nancial pressure, they often sell industrial land at low prices to attract investment.Local government land transfer strategies refl ect driving mechanisms of offi cials' behavior.Based on the micro data of about 340000 industrial land sales in 289 prefecture-level cities in China from 2006 to 2015, this paper divides industrial land transfer into two categories, namely land transfer with the aim of attracting investment and normal transfer, according to whether the transfer price is lower than the minimum price stipulated by central government.The paper explores the strategies of industrial land transfer under fi nancial pressure and the motivation differences of offi cials with the help of changes in local land transfers after the introduction of economic stimulus policies.It is found that fi nancial pressure will signifi cantly reduce local industrial land transfer with the aim of investment attraction.However, after the introduction of economic stimulus policies, although fi nancial pressure has increased, the infl uence of fi nancial pressure on local governments' investment-induced land transfer behavior significantly weakened due to the increase of out-of-system fi nancing channels, thus industrial land transfer with the aim of attracting investment has increased signifi cantly.From the perspective of promotion incentives of offi cials, offi cials with longer term were more inclined to sell industrial land to attract investment.Therefore, it is necessary to rationally arrange the financial resources and powers of central and local governments, to adapt reasonable macro control method and strategy, and to build an offi cial evaluation system that meets the needs of high-quality development.
Authors: Shouwei Qi, Hui Mao, Jidong Zhang
Language: English
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid:
OpenAlex ID: W4414067049