A paper co-authored by Associate Research Fellow HAN Libin of the Institute for Northeast Full Revitalization at Dongbei University of Finance and Economics (DUFE) has been accepted for publication in International Economic Review, one of the top journals in economics. The study, titled “Place-based Land Policy and Spatial Misallocation: Theory and Evidence from China,” is a collaborative effort with Assistant Professor FANG Min of China Europe International Business School (CEIBS), Associate Professor HUANG Zibin of Shanghai University of Finance and Economics, Professor LU Ming of Shanghai Jiao Tong University, and Professor ZHANG Li of Sun Yat-sen University.

Combining empirical analysis with a quantitative spatial equilibrium model, the research team evaluates how China’s construction land quota allocation policy (2003–2007) influenced the spatial allocation of production factors, macroeconomic efficiency, and household welfare. Using firm-level data and a difference-in-differences approach, the empirical results show that the policy narrowed the productivity gap between eastern and inland regions by 5% to 7%, indicating significant regional convergence. Furthermore, counterfactual simulations indicate that, even under the pre-2003 land allocation rules with a constant national land supply, only cross-region quota reallocation would have raised aggregate national output and increased incomes for workers in less-developed regions.

International Economic Review is one of the most influential journals in the field of economics. It publishes cutting-edge original research that integrates rigorous theory with quantitative methods and enjoys broad influence and exceptional academic prestige worldwide. The acceptance of this paper marks a landmark achievement for the cross-institutional research team. It highlights DUFE’s growing research innovation capacity at the frontier of economics and showcases the success of its high-level, cross-regional academic collaborations.

Written by: HAN Libin, WANG Ning

Source: Institute for Northeast Full Revitalization