Analyzing the Land Leasing Behavior of the Government of Beijing, China, via the Multinomial Logit Model

In this paper, the government behavior of leasing different land use rights in Beijing, China, is analyzed using data analysis based on the multinomial logit model. The factors that lead the government to lease different land use rights are considered from the aspects of the land features, geographical location of the land, district economic development, government finance and political tenure of the district head, etc. Considering the factors as the variables, the multinomial logit model is presented to analyze the factors that affect the district government behavior on leasing different land use rights. The data of the variables are obtained in Beijing at the district level from 2004 to 2015. From the results, we can see that the area and price of the land, gross domestic product, foreign direct investment, distance of the land from airport, distance of the land from city center, distance of the land from the nearest industrial park, government fiscal deficit and tenure of the district head all influence the district government behavior on leasing land. Finally, the policy implications are proposed. The results and implications can be referenced by other metropolises in China and other developing countries with public ownership of land.