Exploring China’s Impacts on Development Thinking and Policies

In this article, we explore the impacts, actual and potential, of China’s development experiences upon development thinking and policies elsewhere. New Structural Economics, a theoretical innovation by Professor Justin Yifu Lin drawing on a longer tradition of pragmatic ‘learning by doing’ development strategies, provides a framework in which three agendas stand out: structural transformation as a policy priority; the return of industrial policy; and the use of Special Economic Zones. We integrate related drivers of growth in China: rapid urbanisation pulling in massive rural migration in an economic transformation process; the financing of provincial and city governments by improvised local government financing vehicles based on rising urban land values; and competition and accountability processes in China’s subnational governance system. While China’s experiences cannot be directly replicated elsewhere, we argue that lessons on why and how to achieve structural transformation are relevant for other developing countries, especially in fast urbanising and integrating Africa.

Study of acid-alkaline conditions of different-age arable soils of landscape catens of Central Forest-Steppe

Fertility of soils is largely determined by their physical and chemical properties. Response of soil environment is a mobile indicator of soil fertility. Direction and intensity of almost all soil processes that provide nitrogen, phosphorus and potassi- um regimes of soils, as well as availability of macro- and microelements for plants, depend on it. The paper presents the result of a field study of acid-alkaline conditions of profiles of black soil of typical and leached different terms of agricultural use of soil cat- ens of the meadow-steppe section of the Belgorod region in 2019. The research object was different-age arable areas with an age of agricultural development of 140 and 240 years, respectively. The steepness of surface in areas corresponding to the meadow-steppe zonal landscape of the forest-steppe did not exceed 4-6 °. As a result of field studies, 32 incisions were studied in the mead- ow-steppe section (6 incisions on background catens and 12 incisions on open catens). Each incision was provided with layered values of morphometric indicators of soil horizons. For background steppe soils, shade slopes are characterized by more alkaline conditions, in comparison with southern slopes. For 140-year-old arable land, the situation is opposite: shadow slopes have a more acidic reaction of the medium, in comparison with insoluble ones; for 240-year-old arable land, alkaline-acid conditions on the slopes of opposite expositions did not differ significantly. In the first 140 years of plowing, acidification of the soil profile occurs; the difference in the pH value between the background and arable land values of 140 years of age on the slope of the northern ex- position reaches 1.6 on the surface, gradually decreasing to 0.2 at depth. Further plowing leads to alkalization of the soil profile by 0.6-0.9 pH units. The research results can be used in development of agricultural systems in crop industries.

Impact of Truck Parking Facilities on Commercial and Industrial Land Values: A Spatial Hedonic Model

Strategic locations for truck parking capacity expansion should be selected to maximize benefits to drivers and industry while minimizing negative externalities to communities. To select strategic locations, local governments, developers, state transportation agencies, and private truck stop operators need to understand how parking facilities affect local economies. Although sufficient parking capacity allows drivers to adhere to federally mandated rest requirements, demand for safe parking is outpacing supply. Truck parking demand is likely to grow as freight tonnage is estimated to increase 1.2% per year between 2018 and 2045 and mandates for electronic logging devices go into effect. However, truck parking facilities can be viewed by local communities and real-estate developers as producing pollution, noise, and congestion. Yet, they may also represent economic opportunities for tax revenues for the local economy and agglomeration benefits for surrounding trucking-related industries. To address these concerns, a systematic, data-driven review of the economic impacts of truck parking facilities is critical. This paper applied a spatial-autoregressive model with autoregressive disturbances to estimate the impact on commercial and industrial land values attributed to proximity to truck parking facilities. Significant benefits to local land values were found: every 1% increase in distance from a parking facility was associated with a 0.284% decrease in land values, which corresponds to a $2,465/acre reduction in value for an average parcel. The findings of the study could help transportation agencies and truck stop operators strategically locate truck parking facilities to harness the economic benefits to local communities.

Can economic development policy trigger gentrification? Assessing and anatomising the mechanisms of state-led gentrification

This paper aims to bridge universality – as gentrification stands as a global threat to vulnerable communities – and local circumstances and geographies, by investigating structural factors, such as deindustrialisation and land rent gaps, as well as local political economies and socio-spatial structures, which are all common in the Global South. We conducted research in Belo Horizonte, Brazil, to investigate whether a neoliberal economic development policy acted as a trigger for gentrification, relying on mixed methods research to analyse evidence of economic restructuring, land rent creation, changes in resident profiles and major urban development trends in the region. Findings indicate evidence of economic restructuring and that the policy triggered higher land values. However, we did not observe evidence of gentrification in the area and attribute this to a still-relevant manufacturing sector, the extensive presence of large informal settlements, the growing numbers of suburban gated communities, the low proportion of renters, and the fact that local elites are moving southwards while the policy took place in the northern peripheries of the metropolis. Federal policies such as minimum wage increases and housing programs partially contradicted neoliberal state policies. This case study offers a lens to investigate gentrification in different latitudes and illustrates how social policies may prevent gentrification processes.

Perceived competition in agricultural lending: stylized facts and an agenda for future research

PurposeThis study examines agricultural lending by commercial banks and the competition they face from the Farm Credit System (FCS) and non-traditional lenders, including merchants, dealers and other input suppliers.Design/methodology/approachWe construct a measure of commercial banks' perceived competition with FCS or non-traditional lenders using the individual responses to the Federal Reserve Bank of Chicago's Land Values and Credit Conditions Survey between 1999 and 2019. Through regression analysis of an unbalanced panel of survey responses, we present a number of stylized facts on the relationship between perceived competition and farm loan rate spreads, collateral requirements, loan delinquencies and expected lending volumes.FindingsOur analysis shows that the two sources of competition have very different effects on commercial bank lending terms, loan portfolio riskiness and expected loan volumes. With these results in mind, we offer a number of suggestions for future research.Originality/valueWe leverage the unique characteristics of the Land Values and Credit Conditions Survey to examine the competition with non-traditional lenders that cannot be observed using administrative data.

Closing Time: The Local Equilibrium Effects of Prohibition

How do different local policies in a federal system affect local land values, production, and sorting? We study the question exploiting a large historical policy change: U.S. Alcohol Prohibition in the early twentieth century. Comparing same- state early and late adopters of county dry laws in a difference-in-differences design, we find that early Prohibition adoption increased population and farm real estate values. Moreover, we find strong effects on farm productivity consistent with increased investment due to a land price channel. In equilibrium, the policy change disproportionately attracted immigrants and African-Americans.

Are Estimates of Rapid Growth in Urban Land Values an Artifact of the Land Residual Model?

Separating urban land and structure values is important for national accounts and for analysis of real estate risk over time. A large part of the literature on urban land valuation uses the land residual method, which relies on the assumption that structures are easily replaced. But urban land value depends on accessibility to nearby land uses, implying that infrastructure and the slowly changing built environment are the most important components of land value. Investments in structures are only slowly reversible, implying that land and structure function as a bundled good whereas land residual theory severs the connection between land value and structure value over time. We develop a simple theoretical model that includes option value and compare to a nested land residual model before and after a shock to values. Cross-sectionally our model shows that land residual theory overestimates structure value. Over time almost all of any change in property value is allocated to land residuals. Data from Maricopa county, AZ, 2012–2018 strongly support option value models when nested within a general model that also includes land residuals. FHFA estimates use entirely different cost estimation methods: our analysis of FHA data suggest that our conclusions generalize to the U.S. as a whole, and that high and rising land value ratios over 50 years (the “hockey stick” pattern found in the literature) are likely an artifact of the residual model.

Transportation Amenities and High-Tech Firm Location: An Empirical Study of High-Tech Clusters

Clustering and active transportation infrastructures have a significant impact on economic development strategies for attracting high-tech firms. High-tech firms cluster to create economies of scale. In theory, such clusters favor walkable and transit-accessible locations following the preferences of footloose workers of the creative class, an expectation that underpins pro-walkability and transit-accessible development strategies. Such approaches, however, fail to consider countervailing factors including changes in logistics, land values, the rise of the e-economy, and gig workers, which could result in a preference for auto-centric locations. This study addresses the knowledge gap by investigating differences in location behaviors of six high-tech sectoral categories with respect to transportation infrastructures. The analysis uses a firm-level micro dataset provided by Esri along with multiple logit regressions to explore the relationship between high-tech firm locations and transportation amenities in 627 high-tech clusters from the 52 largest U.S. regions. The results show that not all high-tech industries opt for walkable and transit-accessible locations. Compared with other high-tech specializations, professional services (i.e., data processing/computer or engineering and architectural services), which account for the largest share of high-tech employees, are drawn to walkable and transit rich areas near central business districts. On the other hand, auto-centric locations on the peripheries are home to aerospace and bio-pharmaceutical industries. In light of these findings, it is essential that economic development officials aiming to achieve balanced growth consider major local high-tech sector(s) and sectoral differences when making policy decisions.

Designing with ‘direct democracy’

In the 1970s and ’80s residents and architects in Amsterdam worked together to shape the renewal of their neighbourhood. Working outside traditional planning constraints they initiated a process for designing ‘neighbourhood plans’ that gave priority to affordable housing and minimized disruption to the existing social and urban design structure. Although these neighbourhood plans stood in stark contrast to prevailing political and urban planning ideas, they formed the basis on which urban renewal was realized from the middle of the 1970s. While the focus in the historiography of urban renewal is usually on politics and policy, this article provides insight into the design process itself and the ideas behind urban renewal architecture based on numerous consultation documents generated by the collaboration between local residents and architects. The Dapperbuurt area serves as an exemplary case study. The example of the Dapperbuurt shows that locals and architects formed energetic and effective coalitions. After the residents of the Dapperbuurt had won far-reaching control over the design process, including a say in the choice of architect, they entered into a collaboration with the architects Hans Borkent, Rob Blom van Assendelft and Hein de Haan. During the extensive consultation process the architects acted as equal discussion partners rather than all-knowing experts, while local residents provided creativity and spontaneous initiatives and had the final say. Together they designed with ‘direct democracy’. In this article those collaborative arrangements are referred to as ‘creative housing coalitions’. This term expresses both their main aim and their greatest strength. It also shows who initiated the urban renewal housing projects and how grass-roots initiatives were ultimately translated into policy. In the course of the design process, local residents and their architects sought creative ways of reconciling the apparent antithesis between the historically evolved city and modern architecture and urban design. Instead of taking a blank slate as their starting point, they proceeded on the basis of the qualities of the existing environment and the interests and wishes of the residents. This resulted in the retention of the existing morphology and functional diversity. However, the housing projects were on a much larger scale than the individual buildings that had previously made up the neighbourhood, because while the local residents were unwilling to give up their familiar living environment, they did want modern home comforts. This study has revealed that the replacement construction was required to combine the best of both worlds. In order to suggest a smaller scale, the external walls were vertically articulated, and their height demarcated by means of balconies, bay windows, hoisting beams, eaves and staggered building lines. So both contrast to and compatibility with the context are relevant criteria for evaluating urban renewal architecture. In addition, it turns out that a key merit of this urban renewal was its function, namely to deliver affordable and comfortable housing on centrally located sites with high land values. The architecture gives expression to that function.