Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271825 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10181
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We examine the effect of a large-scale administrative reorganization in China, where counties are annexed into cities to accommodate urban growth. We present a simple model to illustrate how this annexation may affect firm entry decisions and in turn land market outcomes. Using nationwide data on land-lease transactions, we find that annexation raises industrial land prices in the annexed counties by 7 percent but does not reduce land prices in neighboring counties and central cities. We show that the annexed counties experienced increases in firm entry and investment, offering a plausible mechanism for the effect on industrial land prices.
Subjects: 
urban growth
industrial land prices
annexation
China
JEL: 
R11
R12
R14
R33
R58
Document Type: 
Working Paper
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