The impact of land finance and land financialisation on sustainable development ——Analysis based on provincial data of China

Abstract This paper comprehensively utilizes entropy weight method, two-way fixed effect model and TVP-SV-VAR model to investigate the impact of land finance and land financialisation on sustainable development. The results show that: as a whole, the implications of land finance and land financialization on sustainable development present inverted U-shaped characteristics conclusively. The regional heterogeneity analysis finds that inverted U-shaped impacts of land financialisation are significant in eastern and central regions, while inverted U-shaped impacts of land finance is salient in western region. Furthermore, the dynamic time-varying feature analysis implemented by different lags and time points indicating the facilitative effects of land finance and land financialization on sustainable development diminish gradually, while the inhibitory effects manifest progressively with the passage of time. We highlight that the delineation of authority and financial resources between central and local governments, optimization and reform of incentive mechanism for local government officials, and the spotlight of regional heterogeneity are paramount for effectively promotion of sustainable development.