Local government competition, decision‐making behavior, and green land use total factor productivity: Evidence from cities in China

Abstract

AbstractLand is a finite and non‐renewable natural resource. The competitive decisions of local governments will have a profound impact on the green and efficient use of land resources. This paper examines the nonlinear effect of local government competition on green land use total factor productivity (GLTFP) using data from 171 Chinese cities from 2006 to 2019. The results show that (1) there is an inverted U‐shaped relationship between the local government competition and GLTFP, and this conclusion holds after addressing a series of endogeneity concerns. (2) Local government competition can affect the inverted U‐shaped relationship between GLTFP through the misallocation of land resources. (3) The impact of local government competition on GLTFP is more prominent in first‐tier and new first‐tier cities in China and cities in western China.