Location choice of industrial land reduction in Metropolitan Area: Evidence from Shanghai in China

Abstract

Abstract Under the background of supply side structural reform of the land market, this paper constructs a location choice behavior model of reduction from the perspective of rent maximization, explores how these factors affect the industrial land reduction location choice. We consider 100 industrial parcels in the suburbs of Shanghai as an example to analyze. It is found that the enterprises in development zones have greater advantages in economies of scale, labor productivity, pollution treatment, and tax payments than enterprises outside the development zone, so the low‐efficiency enterprises outside the development zones are the preferred objects of reduction. The suburban areas have a stronger attraction than the outer suburbs in the process of location choice, and the closer the city center is, the more obvious the location advantages of enterprises in development zones. Under the control of the total amount of construction land, the land use structure should be constantly adjusted, inefficient enterprises outside the development zone should be preferred to the reduction object, and the government should actively guide enterprises to enter the development zones.

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