Impact of city-county mergers on land transfer dynamics: Evidence from China

Urban governance and policy analysis are essential for sustainable development. This study investigates the impact of city-county mergers (CCM) on local land transfer dynamics in China. Using a difference-in-differences model and data from 2007 to 2020, our findings show that these mergers significantly increase the total land transfer area by approximately 4.5% and transfer revenue by about 2.5%. The results reveal that local governments collaborate with “operating enterprises,” leveraging administrative control to select land users and expand construction land availability. This study challenges the prevailing view that financial pressures primarily drive land transfer behavior, instead identifying a cumulative effect in which stronger industrial bases result in greater land allocation for industrial development. These findings underscore the complexity of urban governance and raise critical questions about the sustainability of current urbanization practices and their broader socioeconomic implications. Our research offers valuable insights for urban planners, policymakers, and analysts dedicated to effective urban management and policy implementation.