Land Transfer Strategy and Industrial Structure Upgrading <br/>—Analysis Based on Geographical Externality

Abstract

Based on 251 prefecture-level cities in China from 2003 to 2014, this paper examines the impact of land transfer strategies of local governments on the upgrading of industrial structure from the perspective of the first and second geographical externalities. The study found that: the local government land transfer strategy can improve the pace of local evolution from primary industry to secondary and tertiary industry; by increasing its relative share, it is conducive to upgrading the quantity of industrial structure upgrading; the local government land transfer strategy has uncertainties on the qualitative impact of industrial structure upgrading; the local government land transfer strategy has uncertainties; The influence of land transfer strategy on the rationalization of industrial structure is uncertain. Local government’s land transfer strategy enhances local government’s land transfer funds, strengthens local government’s financial resources, and local government promotes the amount of industrial structure upgrading through the allocation of financial input. In terms of geographical externalities, the land transfer strategy of local governments is competitive, and the land transfer strategy of local governments can easily lead to the competition of funds, technology, talents and other resources among local governments.