Governmental Interactive Strategies for Urban Real Estate Investment in China: An Analysis of the Promotion Tournament Model
Publication: Journal of Urban Planning and Development
Volume 148, Issue 4
Abstract
China’s central government has chosen the real estate industry as a pillar industry for achieving rapid economic growth. Local city governments also generally enlarge their scales of urban real estate investment to boost their political performance within the Chinese promotion tournament. To identify and separate the governmental interactive strategy of a particular city from the spatial dependence effects of urban real estate investment in its neighboring cities, we applied empirical data to various spatial econometric models with different spatial weighting matrices that incorporated the physical distances between cities and the differences in their population sizes and administrative divisions. There is evidence of spatial dependence effects. In terms of both population size and administrative divisions, these effects are mainly the result of governmental interactive strategies in addition to the First Law of Geography. Such strategies are positive and complementary because a city makes corresponding decisions to increase its real estate investments as its neighboring cities increase their scales of urban real estate investment.
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Acknowledgments
This work was funded by the National Natural Science Foundation of China (Grant No. 41901141), the Natural Science Foundation of Shandong province (Grant Nos. ZR2019PD015 and ZR2019PD009), the Social Science Foundation of Qingdao (Grant No. QDSKL2101008), and the China Postdoctoral Science Foundation (Grant Nos. 2018M642643 and 2019M652364).
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Journal of Urban Planning and Development
Volume 148 • Issue 4 • December 2022
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© 2022 American Society of Civil Engineers.
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Received: Jan 11, 2022
Accepted: May 31, 2022
Published online: Sep 12, 2022
Published in print: Dec 1, 2022
Discussion open until: Feb 12, 2023
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