International Conference on Construction and Real Estate Management 2018
Does Land Finance Matter the Tertiarization of Industry Structure? A Perspective Based on Urban Scale
Publication: ICCREM 2018: Analysis of Real Estate and the Construction Industry
ABSTRACT
The phenomenon of land financing is unique to China. This paper tries to investigate whether the effects of land finance on the tertiarization of a city’s industry structure vary with urban scale and explore the underlying mechanisms both theoretically and empirically. The paper hypothesizes that only when a city’s economic development reaches a certain size will local governments be more inclined to develop the tertiary industry, which could generate greater revenue from residential and commercial land. As a result, land finance may accelerate the tertiarization of a city’s industry structure. Using panel data from 282 cities, prefecture-level and above, in China from 2004 to 2013, the empirical results are as follows. First, it is found that land finance has no significant effect on tertiarization of industry structure for the country as a whole. However, when cities were grouped by size, there were heterogeneous effects. Specifically, land finance had a positive effect on tertiarization of industrial structure in medium-sized cities, but did not have a significant effect for large or small cities.
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ACKNOWLEDGEMENT
This research is Supported by the National Natural Science Foundation of China (Grant No. 71373295), (Grant No. 71473283) and Open Project Fund of Institute for China Sustainable Urbanization, Tsinghua University (Grant No. TUCSU—K—17013—01).
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Published In
ICCREM 2018: Analysis of Real Estate and the Construction Industry
Pages: 108 - 115
Editors: Yaowu Wang, Professor, Harbin Institute of Technology, Yimin Zhu, Professor, Louisiana State University, Geoffrey Q. P. Shen, Professor, Hong Kong Polytechnic University, and Mohamed Al-Hussein, Professor, University of Alberta
ISBN (Online): 978-0-7844-8174-5
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© 2018 American Society of Civil Engineers.
History
Published online: Aug 8, 2018
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