Land regulating economy as a policy instrument in urban China

The regulation of urban land in China has become more important as a policy instrument, suggesting that land supply may be a catalyst for urban economic growth. Based on official data on land use change for the period 2005 to 2014, an econometric model of urban GDP growth reveals lagged effects of land supply on economic growth. Land supply has a more significant effect on economic growth in prefecture-level cities than in county-level cities. City size and development stage also shape the effects of land on economic growth; in addition, land plays different roles in economic growth in eastern coastal cities and in cities in the central and western parts of China. Different land use allocations have been successfully used as a tool for fostering economic growth in urban China. •There exist lagged effects of land supply on economic growth.•Land supply has a more significant effect in prefecture-level cities than in county-level cities.•City size and development stage shape the effects of land on economic growth.•Land plays different roles in economic growth across regions.