Effects of Transfer of Land Development Rights on Urban–Rural Integration: Theoretical Framework and Evidence from Chongqing, China

Abstract

The transfer of land development rights (TDR) is a significant policy tool for advancing urban–rural integration. This study establishes an analytical framework to examine the influence mechanism of TDR on urban–rural integration, considering the flow of land, capital, and population factors. Furthermore, an indicator system is developed to evaluate urban–rural integration across economic, social, and population dimensions. Using panel data from Chongqing, China (2013 to 2019), this article adopts the global principal component analysis (GPCA) method and time-varying difference-in-difference (TV-DID) model to analyze the effects of the land quota trading project, known as the ‘Dipiao’ policy. The results show that TDR can effectively promote urban–rural integration, though with a four-year time lag. Heterogeneous effects of TDR on urban–rural integration are observed across different districts and counties, with the more pronounced promotion in areas characterized by low agricultural land value or high industrial land value. This study further analyzes the influence mechanism of TDR on urban–rural integration. It concludes with policy implications on improving TDR to promote urban–rural integration.

Keywords

• transfer of land development rights
• urban–rural integration
• global principal component analysis
• time-varying difference-in-difference
• Chongqing