Effects of government competition on land prices under opening up conditions: A case study of the Huaihe River ecological economic belt

Abstract

This paper considers government competition and other behaviors under open conditions. Based on urban data for the China Huaihe River ecological economic belt from 2004 to 2016, we establish an interactive effect panel data model. An iterative algorithm is adopted to analyze the factors influencing the prices of comprehensive land, commercial land, residential land, and industrial land. The empirical results show that population density is the most important factor affecting land price. Except for industrial land, the positive and negative effects that various factors have on land price for other uses remain consistent. Due to the distortion of industrial land price, the sensitivity of land price for different cities and uses to policy and institutional changes varies. Therefore, to achieve the optimal allocation of resources, government departments must reasonably control the population flow in cities, avoid blind competition between governments, implement land policies in a targeted manner in accordance with local conditions, and improve and adjust the structure of land supply and demand.