Effects of dual land ownerships and different land lease terms on industrial land use efficiency in Wuxi City, East China

Abstract

In the current Chinese land administration system, two types of land ownership including state and collective ownership coexist and the industrial land use rights can be transferred between different land lease terms. Previous studies found the significant relationship between land ownerships and lease terms with agriculture land use efficiency, but it is still unclear for the industrial land use efficiency. This study researched the effects of China's dual land ownerships and land lease terms on rural town industrial land use efficiency. Questionnaires of 294 industrial enterprises in Hudai, Qianqiao, and Xibei in Wuxi City, East China, were studied using two multiple linear regression models. The results showed that collective land with incomplete property rights caused land use inefficiency of lower industrial enterprises' output per hectare of land. The industrial enterprises' outputs per hectare from collective land were 2.16 million Yuan (0.31 million US dollar) and 2.06 million Yuan (0.30 million US dollar) less than those from state land in these two models, respectively. Different land lease terms negatively correlated with the use efficiency of rural industrial land. The outputs per hectare of industrial enterprises using the long-term lease were 1.30 million Yuan (0.19 million US dollar) less than those using the short-term lease in model 2. Our results highlight the importance of the integrated urban-rural land system and tailored lease terms of industrial land to increase the utilization efficiency of industrial land.