Land is one of the basic production factors, and its price has an important impact on the formation and change of industrial structure. Overall, land prices are on the rise due to the low elasticity of land supply and the continuous expansion of the city. The rise of a city’s land price may have a positive impact on its industrial structure upgrade, and may also have a negative impact. Based on the panel data analysis of the land price and industrial structure data of 105 prefecture-level cities and above in 2009-2016, we find that the rise of land prices does have the effect of promoting the upgrading of urban industrial structure, and there are significant differences in the eastern, central and western regions; not the higher the better, once the ratio of land price to per capital GDP exceeds the threshold, the promotion of land price will be significantly reduced. The enlightenment to us is that although the rise in land prices does have the effect of upgrading the industrial structure and promoting economic growth,but if land prices rise too much, it will have an adverse impact on the upgrading of industrial structure and thus on the promotion of economic growth.Especially under the conditions of high openness, the excessive increase in land prices will inevitably engulf the benefits brought about by the productivity improvement of enterprises, which may result in the retreat of low-end industries, and the high-end industries are reluctant to enter. Therefore, how to control land prices and adapt them to the needs of urban industrial structure upgrading will become an important issue for urban local governments.
Industrial structural upgrade