Abstract
This article investigates the major role of high land prices in the current massive intracountry industrial relocation from coastal to inland areas in China. A conceptual model is developed to explore the causalities of urban expansion, land prices, and coastal-to-inland business relocation. It demonstrates that relocation is mainly driven by high land prices resulting from urban expansion. Research is based on in-depth field studies of several representative relocated firms in the Yangtze Delta area. The findings derived from the case studies support the theoretical model and empirically validate the hypothesis.