On the External Driving Force of Industrial land Prices in the Pearl River Delta: A Game Model Analysis

Abstract

It has been over 20 years that land was taken into the economic market as a factor of production. However, as it is influenced by the planned economic system in the past, the administrative intervention of governments has brought about the “market failure” on the allocation of the industrial land For all these reasons, a lot of industrial lands have been sold at very low prices. The losses of state-owned land and extensive land use have caused a lot of negative consequences to industrial land market and the management of industrial land. This paper took the perspective of the international game to investigate the industrial land price formation mechanism of the Pearl River Delta. Firstly, the conditions of industrial land in the Pearl River Delta and Southeast Asian countries like Vietnam, Thailand and Malaysia are analyzed to explore the industrial land prices in recent years. This is followed by a game theory model of international industrial land prices. In this way, this paper found the low-cost strategy from the governments should be prevented to avoid high social cost. Finally, relevant policy suggestions are put forward to encourage the appropriate use of industrial land use in China.