SCHOLARLY SHOWCASE 26 Yatang Lin, Ziyang Chen, Ting Chen, Jin Wang. “ Building tall, falling short: An empirical assessment of Chinese skyscrapers.” Journal of Urban Economics (2025). Focus of Study This study explores the drivers and economic ef ciency of state-led urbanization via China’s skyscraper development (2006–2014). It nds local governments offer average 40.1% land price discounts to commercial skyscraper developers, motivated by of cials’ career incentives and the central government’s monetary easing. Using spatial DID and event study methods, it reveals unsubsidized skyscrapers generate localized spillovers (land price hikes, new businesses), while subsidized ones show negligible effects 5–10 years post-completion due to poor locations, unreliable developers, and inadequate infrastructure. Policy Recommendations Policymakers should avoid over-reliance on skyscraper subsidies for urban growth. They need to prioritize local conditions (e.g., location, infrastructure) when approving projects, strengthen oversight of developer quali cations, and increase complementary public investments. This ensures state-led urbanization initiatives deliver sustainable economic returns and avoid exacerbating local debt risks.
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