Resources Science ›› 2020, Vol. 42 ›› Issue (11): 2224-2236.doi: 10.18402/resci.2020.11.14

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Impact of administrative approval reform on land leasing in industries with overcapacity

XU Shengyan1(), WU Jingwei2   

  1. 1. Business School, Hohai University, Changzhou 213022, China
    2. Jiangsu Financial Leasing Co., Ltd, Nanjing 210019, China
  • Received:2019-11-15 Revised:2020-05-29 Online:2020-11-25 Published:2021-01-25


Based on the micro-level data of China’s industrial land transfer and the data of prefecture-level municipal administrative approval centers from 2007 to 2017, this study analyzed the impact of the administrative approval reform on industrial land transfer in overcapacity industries, and evaluated the effect of local governments on implementing capacity-removal policies. Using the difference-in-difference model, we found that (1) The establishment of administrative approval centers in prefecture-level cities has prompted local governments to significantly reduce the supply of land for industries with overcapacity. (2) Considering the type of cities, we found that the establishment of administrative approval centers has a greater effect on the suppression of land supply to industries with overcapacity in ordinary prefecture-level cities than in provincial capital cities. (3) There is heterogeneity across regions and industries. The establishment of the administrative approval centers significantly reduces the transfer of industrial land to industries with overcapacity in the central and western regions, but has little impact on cities in the eastern region; it significantly reduces the transfer of industrial land to industries with overcapacity in the manufacturing industry, but has less impact on non-manufacturing industries. Within the manufacturing industry, the effect in the final product industry was significantly greater than the intermediate product industry. This research concludes that standardizing administrative approvals helps local governments to reduce land transfer in overcapacity industries. From the perspective of land supply, it provides new microscopic evidence for local governments to implement overcapacity reduction policies in overcapacity industries. The reform of administrative approval should be further deepened in the future by focusing on deepening the reform in the central and western regions; adopting special policies to promote the reform of non-manufacturing industries led by state-owned enterprises; paying attention to industrial differences within the manufacturing industry, especially de-capacity in the intermediate product industry.

Key words: industrial land leasing, administrative approval reform, capacity reduction, resource allocation, difference-in-difference method