Abstract: As a special fiscal phenomenon in China, land finance affects the production behavior and efficiency of microeconomic subjects.This paper takes the listed enterprises in China from 2007 to 2017 as the analysis object, and explores the different characteristics of the impact of land finance on total factor productivity of micro enterprises by incorporating the will of local governments.It is found that the greater the intensity of local land finance is, the more obvious the inhibitory effect is on the total factor productivity of enterprises; from the perspective of macro impact mechanism, the greater the financial intensity of land, the more it will restrain the technology exchange at the regional level, and drive the local government to invest in infrastructure construction, which will restrain the total factor productivity of enterprises;from the perspective of micro impact mechanism, the greater the financial strength of land will drive enterprises to strengthen financial leverage to obtain more financial resources,and one of the consequences is that the financial stability of enterprises will decline, and the R&D investment of enterprises will be squeezed out, which is not conducive to the increase of total factor productivity.In addition, the assessment system of local government will affect the paradigm of “Land Finance-Total Factor Productivity of enterprises”, the system incentive of “competition for growth” strengthens the negative inhibition of land finance, and the system incentive of “competition for innovation” can neutralize the adverse effect of land finance to a certain extent.

Key words: Key words：land finance, enterprise total factor productivity, local government behavior, transmission mechanism