Effect of Land Marketization on the High-Quality Development of Industry in Guangdong Province, China

Abstract

This study developed a theoretical framework on the relationship between land marketization and industrial high-quality development (HQD) to guide the formulation of policies for advancing new industrialization and high-level manufacturing capabilities. An evaluation system was constructed that can assess regional industrial HQD in seven dimensions: innovation, efficiency, structural optimization, financial risk control, openness, social welfare, and greenness. Based on data related to urban primary land markets and different industries in Guangdong province, China, from 2007 to 2021, the effect of land marketization on industrial HQD was explored using the evaluation models of land marketization and industrial HQD, the Theil index, a panel data model, and the difference generalized method of moments. The findings revealed that land marketization and industrial HQD have increased gradually in Guangdong. In the Pearl River Delta (PRD), both factors have increased rapidly, albeit with low levels of land marketization and high levels of industrial HQD. Notably, the province-wide scores for financial risk control and openness have declined. In the PRD, scores for efficient and financial risk control have consistently been lower than those outside the PRD. Positive relationships were discovered between land marketization and various aspects of industrial HQD, including industrial innovation, efficiency, structural optimization, greenness, and social welfare. Conversely, land marketization was found to have negative relationships with financial risk control and openness. Compared with that in the non-PRD, land marketization in the PRD was more conducive to industrial HQD, innovation, efficiency, structural optimization, and openness but less conducive to greenness, social welfare, and financial risk control. This research concluded that land marketization can promote industrial HQD through rising land prices and an open and fair environment for land market trading. The results of this study enrich the theoretical knowledge of the effects of industrial HQD in China; thus, they can be used as a reference in the formulation of industrial HQD policies related to market-oriented reform and land allocation in China.