The Misallocation in the Chinese Land Market

Xu Fei
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引用次数: 5

Abstract

This paper proposes a spatial equilibrium model to quantify welfare losses from land market distortions in China. In the model, heterogeneous firms in a variety of sectors choose their locations across regions with costly trade, frictional labor migration, and land market distortions. We match land transaction and firm-level survey data to estimate land market distortions for firms. Misallocation arises when similar firms are faced with land prices that effectively prevent productive firms from establishing in large cities where they can benefit from agglomeration forces and access to higher productivity. Our framework incorporating land market distortions also helps clarify the mystery of China’s undersized cities, a phenomenon noted by Au and Henderson (2006) and Chauvin et al. (2017). Our estimates suggest large negative effects of land policies on the economic welfare in China. We end with a counterfactual exercise that suggests that a coordinated land and labor migration reform would generate welfare gains and reduce regional inequality
中国土地市场的错配
本文提出了一个空间均衡模型来量化中国土地市场扭曲造成的福利损失。在该模型中,不同行业的异质企业在贸易成本高、劳动力迁移摩擦和土地市场扭曲的地区之间选择其所在地。我们将土地交易和企业层面的调查数据相匹配,以估计土地市场对企业的扭曲。当类似的企业面临土地价格时,土地价格有效地阻止了生产性企业在大城市落户,而在大城市,它们可以从集聚力量中受益,并获得更高的生产率。我们纳入土地市场扭曲的框架也有助于澄清中国小规模城市的奥秘,Au和Henderson(2006)以及Chauvin等人(2017)指出了这一现象。我们的估计表明,土地政策对中国的经济福利产生了巨大的负面影响。我们以一个反事实的练习结束,该练习表明,协调的土地和劳动力迁移改革将产生福利收益并减少地区不平等
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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