Does industrial digital transition improve urban land use efficiency? Evidence from Chinese cities

Economic and institutional forces are considered as key determinants of urban land use efficiency (ULUE), while the role of technological change has received insufficient attention. This study examines whether industrial digital transition (IDT) enhances ULUE across 281 prefecture-level cities in China. We measure both IDT and ULUE and employ spatial Durbin and mediation models to identify the effects of IDT on ULUE. The results indicate that both IDT and ULUE have steadily improved over time. Specifically, the average ULUE rose from 0.603 in 2010 to 0.723 in 2020, and the mean IDT index increased from 0.115 in 2009 to 0.504 in 2019. Eastern cities consistently recorded higher values than their central and western counterparts. Findings reveal a significant positive association between IDT and ULUE, with limited evidence of spatial spillover effects. Furthermore, the upgrading of labour force skill structure and industrial structure serves as important mediating channels through which digital transition promotes ULUE. Further analysis uncovers a spatial gradient in these mediating effects. In the eastern region, both the upgrading of labour force skill and industrial structures act as mediators to enhance ULUE. In the central region, only labour force skill upgrading plays a mediating role, while in the western region, neither channel shows a significant effect. These regional disparities reflect differences in the intensity of technology adoption. By emphasizing the growing importance of technological transformation in shaping land use outcomes, this study extends the ULUE literature beyond traditional perspectives centred on factor endowments and institutional arrangements.