Land price marketization is a key component of factor price reform in China. Based on panel data in industrial sector from 2007 to 2013, this paper empirically analyzes the impact of relative price changes of industrial land on factor input adjustment and biased technical progress in China's industrial sector. It comes to the results as follows:in the short run, the rise in relative prices of industrial land suppresses the demand of industrial land, and induces the industrial sector to increase the relative input proportion of other factors to reduce the amount of industrial land in East China, while at the national level and in Central China & West China, short-term price-induced substitution effect of relative price changes of industrial land does not hold; in the long run, the increase in indusrial land prices leads to the use of energy & material capital input-saving and intellectual capital input-using technological progress; and the land input-saving technological progress feature is only significantly supported in East China, and is not obvious at the national level and in Central China and West China, which is closely related to the marketization reform of industrial land prices oriented by Chinese governments. Therefore, in the future China should regard the land price marketization reform as an opportunity, pay full attention to the incentive effect of land price lever on fator structure optimization and technological innovation in industrial sector, to promote the transformation of industrial growth pattern.
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The Impact of Land Price Marketization on Factor Input and Technology Choice in China's Industrial Sector
Journal of Finance and Economics Vol. 42, Issue 08, pp. 85 - 96 (2016) DOI:10.16538/j.cnki.jfe.2016.08.008
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Zhao Aidong, Lan Jing, Ma Xianlei, et al. The Impact of Land Price Marketization on Factor Input and Technology Choice in China's Industrial Sector[J]. Journal of Finance and Economics, 2016, 42(8): 85–96.
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