Urbanization and Land Finance Dependence: Insights from China

Description

This paper treats the New-type Urbanization (NTU) pilot strategy as a quasi-natural experiment and measures the level of land finance dependence using panel data from 2006 to 2022 within China’s prefecture-level cities. By employing the staggered difference-in-difference approach, the impact of NTU on land finance dependence and its potential mechanisms are examined. The results show that NTU significantly reduces land finance dependence, with the implantation of NTU leading to a 0.13% reduction in land finance dependency in pilot cities. Furthermore, this positive effect is more pronounced in resource-based cities, areas with lower land utilization efficiency, higher human capital, and less carbon emissions. Mechanism tests indicate that NTU mitigates land finance dependence by enhancing entrepreneurial vitality, innovation activity and economic resilience. From the perspective of China’s modernization path, this paper provides practical evidence for high-quality regional development and offers insightful policy recommendations.

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Funders

• Fundamental Research Funds for the Central Universities

  Grant ID: CXJJ-2024-303

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