Recently, a paper, “Government policy and land price dynamics: A quantitative assessment of China’s factor market reforms”, was published in international authoritative SSCI journal of Regional Science and Urban Economics Vol. 98. It was a paper finished cooperatively by Dr. Liao Mouhua, a teacher in the School of Economics and Management of FPNU, as the corresponding author, Professor Vipul Bhatt of the Department of Economics of James Madison University and Associate Professor Zhao Minqiang of the Wang Yanan Institute of Economic Research of Xiamen University.
The co-authoring paper by Dr. Liao told the story of reform in China since 1978. It focused on the market reform represented by land and other factors, and reviewed the reform process of China in the past 40 years through mathematical models. For the first time the paper theoretically summarized the phenomenon that the price of residential land in China’s urban land market is much higher than that of industrial land as price discrimination. The paper showed that the rising demand for residential land brought about by urbanization had its limitation when explaining the rise in the price ratio of residential land to industrial land. Then, the paper used Chinese characteristic data to calibrate the model and explained the increase in the price ratio of residential land to industrial land in China from 2000 to 2016 (the error was less than 10%). At the same time, the paper explained both the increase in China’s share of labor income between 1989 and 1997 and the decline after 1998, while most of the existing literature available only explain the decline part.
It was the first time that the teacher in the filed of economics and management of FPNU published high-quality paper in the international leading journal. For a long time, FPNU attaches great importance to talent team building and measures to introduce and cultivate high-level talents. 2022 was Dr. Liao Mouhua’s first year in FPNU, and this paper to some extent showed the achievements of our high-level talent introduction policy.
(Translated by Zheng Yunshuang,
/Reviewed by Xu Qinliang)
