How do industrial land price variations affect industrial diffusion? Evidence from a spatial analysis of China

Unreasonable industrial land price in China not only lead to a waste of resources and inefficient land use, but also seriously restrict the industrial optimizing configuration and layout. Different land price strategy is an important way to control and guide industrial development. It is unclear whether the industrial diffusion scale of different cities in China is attributable to the land price variations. Based on the calculation of industrial land price variation (ILPV) and industrial diffusion scale index (IDSI), this paper investigates their spatial distribution and characteristics. There is obvious regional difference in the lowest standard of industrial land transfer price (LP) and ILPV. The industrial diffusion scale index of eight industries have a spatial positive correlation in different cities. By using the spatial data of 2015, this study examines the spatial effect on the industrial land price variations of industrial diffusion scale and its determinants by the Geographical Weighted Regression (GWR) model. The empirical results prove that the ILPV has a remarkably negative effect on the industrial diffusion scale in the four kinds of industries and it has obvious spatial correlation on the industrial diffusion scale. Except for the trade freedom, other control variables have little influence on the industrial diffusion scale.