How Does Land Development Promote China’s Urban Economic Growth? The Mediating Effect of Public Infrastructure

Although substantial studies emphasized the close relationship among land development, public infrastructure, and urban economic growth, the mediating effect of public infrastructure remains unexplored. Using panel data of 253 prefecture-level Chinese cities from 1999 to 2012, we empirically conduct a mediating effect analysis to examine how land development promotes urban economic growth. It is found that land development has a positive impact on public infrastructure, whereas the construction of public infrastructure is positively related with urban economic growth. Therefore, land development exerts a positive influence on urban economic growth through one important mediator: public infrastructure. It is also found that the mediating effect of public infrastructure is partial. The estimation results are robust to various specifications and sensitivity analysis.