Abstract
In most empirical applications, forecasting models for the analysis of industrial land focus on the relationship between current values of economic parameters and industrial land use. This paper aims to test this assumption by focusing on the dynamic relationship between current and lagged values of the 'economic fundamentals' and industrial land development. Not much effort has yet been attributed to develop land forecasting models to predict the demand for industrial land except those applying static regressions or other statistical measures. In this research, we estimated a dynamic panel data model across 40 regions from 2000 to 2008 for the Netherlands to uncover the relationship between current and lagged values of economic parameters and industrial land development. Land-use regulations such as land zoning policies, and other land-use restrictions like natural protection areas, geographical limitations in the form of water bodies or sludge areas are expected to affect supply of land, which will in turn be reflected in industrial land market outcomes. Our results suggest that gross domestic product (GDP), industrial employment, gross value added (GVA), property price, and other parameters representing demand and supply conditions in the industrial market explain industrial land developments with high significance levels. It is also shown that contrary to the current values, lagged values of the economic parameters have more sound relationships with the industrial developments in the Netherlands. The findings suggest use of lags between selected economic parameters and industrial land use in land forecasting applications.