Place-based Land Policy and Firm Productivity: Evidence from China's Eastern-Inland Regional Border

29 Pages Posted: 18 Jan 2024 Last revised: 1 Apr 2024

See all articles by Min Fang

Min Fang

University of Florida - Department of Economics

Libin Han

Dongbei University of Finance and Economics

Zibin Huang

Shanghai University of Finance and Economics - College of Business

Ming Lu

Shanghai Jiao Tong University (SJTU)

Li Zhang

Sun Yat-sen University (SYSU)

Date Written: February 5, 2024

Abstract

We study the effect of China’s inland-favoring land policy on firm-level productivity by em- ploying a research design combining difference-in-differences and regression discontinuity at the policy border. We find that the inland-favoring land policy decreased the firm productivity gap between developed (eastern) regions and underdeveloped (inland) regions. The relative changes are mainly due to slower eastern firm productivity growth rather than faster inland firm productivity growth. Eastern firms reduced their R&D expenditure and capital usage as a response to the policy.

Keywords: Place-based Policy; Land Policy; Spatial Misallocation; Migration; Labor Mobility; Regional Inequality; China;

JEL Classification: O18, R58, E24, J61, R52;

Suggested Citation

Fang, Min and Han, Libin and Huang, Zibin and Lu, Ming and Zhang, Li, Place-based Land Policy and Firm Productivity: Evidence from China's Eastern-Inland Regional Border (February 5, 2024). Available at SSRN: https://ssrn.com/abstract=4695879

Min Fang (Contact Author)

University of Florida - Department of Economics ( email )

224 Matherly Hall
Gainesville, FL 32606
United States

HOME PAGE: http://www.minfang.info

Libin Han

Dongbei University of Finance and Economics ( email )

China

Zibin Huang

Shanghai University of Finance and Economics - College of Business ( email )

777 Guoding Road
Shanghai, 200433
China

Ming Lu

Shanghai Jiao Tong University (SJTU) ( email )

800 Dongchuan Rd
Minhang, Shanghai 200240
China

Li Zhang

Sun Yat-sen University (SYSU) ( email )

Haizhu District
Guangzhou, Guangdong
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
26
Abstract Views
183
PlumX Metrics