Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress

In this study, we explore the impact of land investment introduction on efficiency loss at both the enterprise and urban levels and discuss the role of factor-biased technological progress in minimizing these losses. Using a nested constant elasticity of substitution (CES) production function, we th...

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Main Authors: Ning Zhang, Linyun Zhou
Format: Article
Language:English
Published: MDPI AG 2025-06-01
Series:Land
Subjects:
Online Access:https://www.mdpi.com/2073-445X/14/7/1319
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author Ning Zhang
Linyun Zhou
author_facet Ning Zhang
Linyun Zhou
author_sort Ning Zhang
collection DOAJ
description In this study, we explore the impact of land investment introduction on efficiency loss at both the enterprise and urban levels and discuss the role of factor-biased technological progress in minimizing these losses. Using a nested constant elasticity of substitution (CES) production function, we theoretically validate the premise that land investment introduction disrupts the optimal allocation of productive factors and reduces the “threshold selection” effect of land cost, leading to efficiency losses. Empirically, the systematic generalized method of moments (GMM) is applied to analyze panel data from 284 prefecture-level cities in China between 2007 and 2019. The findings reveal that land investment introduction brings about efficiency losses and prolonged land investment strategies that deepen enterprise efficiency loss, while urban efficiency loss may be temporarily alleviated but tends to deepen over the long term. Enterprise efficiency loss can be reduced by selecting land-biased, labor-biased, and capital-biased technological progress; however, its impact on urban efficiency loss remains uncertain. These findings provide insights into the optimal selection of factor-biased technological progress for industrial enterprises and provide policy-oriented recommendations for enhancing production and improving efficiency.
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institution Kabale University
issn 2073-445X
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publishDate 2025-06-01
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series Land
spelling doaj-art-94dc27fa77604904b59d176b06107ff32025-08-20T03:58:30ZengMDPI AGLand2073-445X2025-06-01147131910.3390/land14071319Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological ProgressNing Zhang0Linyun Zhou1College of Public Administration, Nanjing Agricultural University, Nanjing 210095, ChinaSchool of Emergency Management, Nanjing University of Science and Technology, Nanjing 210095, ChinaIn this study, we explore the impact of land investment introduction on efficiency loss at both the enterprise and urban levels and discuss the role of factor-biased technological progress in minimizing these losses. Using a nested constant elasticity of substitution (CES) production function, we theoretically validate the premise that land investment introduction disrupts the optimal allocation of productive factors and reduces the “threshold selection” effect of land cost, leading to efficiency losses. Empirically, the systematic generalized method of moments (GMM) is applied to analyze panel data from 284 prefecture-level cities in China between 2007 and 2019. The findings reveal that land investment introduction brings about efficiency losses and prolonged land investment strategies that deepen enterprise efficiency loss, while urban efficiency loss may be temporarily alleviated but tends to deepen over the long term. Enterprise efficiency loss can be reduced by selecting land-biased, labor-biased, and capital-biased technological progress; however, its impact on urban efficiency loss remains uncertain. These findings provide insights into the optimal selection of factor-biased technological progress for industrial enterprises and provide policy-oriented recommendations for enhancing production and improving efficiency.https://www.mdpi.com/2073-445X/14/7/1319land investment introductionenterprise TFPcity TFPfactor-biased technological progress
spellingShingle Ning Zhang
Linyun Zhou
Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress
Land
land investment introduction
enterprise TFP
city TFP
factor-biased technological progress
title Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress
title_full Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress
title_fullStr Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress
title_full_unstemmed Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress
title_short Reducing Efficiency Loss Caused by Land Investment Introduction Based on Factor-Biased Technological Progress
title_sort reducing efficiency loss caused by land investment introduction based on factor biased technological progress
topic land investment introduction
enterprise TFP
city TFP
factor-biased technological progress
url https://www.mdpi.com/2073-445X/14/7/1319
work_keys_str_mv AT ningzhang reducingefficiencylosscausedbylandinvestmentintroductionbasedonfactorbiasedtechnologicalprogress
AT linyunzhou reducingefficiencylosscausedbylandinvestmentintroductionbasedonfactorbiasedtechnologicalprogress