Linking Land Use Planning and Regulation to Economic Development: A Literature Review

This article examines how land use planning and regulation may affect regional economic prosperity by reviewing relevant literature. It identifies a set of complex causal links between land use and regional economies-through (1) development pattern changes and spatial structure reformation, (2) land market efficiency improvements, (3) supply constraints and price increases in property markets, and (4) labor market shifts-that suggest the possibility of countervailing effects. The review also reveals that the economic consequences of land use policies may highly depend on context and that institutional settings as well as substantive policies are essential for achieving more systematic coordination of land use planning and economic development practices.