Industry’s going upstairs: The innovative usage of industrial land and evaluation of its economic effects

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Abstract
The concept of ‘Industry’s Going Upstairs (IGU)’ represents an innovative usage of industrial land that transfers the enterprises’ production to high-rise industrial buildings. It is emerging in the developed areas of eastern China. This study discusses IGU policies to promote local economic development and conducts an empirical test using Guangdong city-level data and a difference-in-differences model. Theoretical analysis shows that IGU can broaden the development space of enterprises and realise industrial and labour agglomeration under supporting policies provided by local governments. The empirical results demonstrate that IGU can improve land-use efficiency and promote local industrial development. IGU is a feasible approach for addressing the current shortage of industrial land in China and is worthy of promotion and replication in other regions.

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