Land Revenue, Public Goods Supply And The Joint Effect On City Growth Research

Recent30years has witnessed the rapid urbanization and development of China.During the urbanization process, more than300million people have migrated from rural places to cities with an annual average urbanization rate ofmore than1%.Govemment-orienting is the most striking feature of China’s urbanization.Local government dominants the decision-making of urbanization-related policy making, and often involves directly into the urban construction process.What’s more, after the tax sharing reform in1994."managing city" and "land finance"gradually become the driving force of city’s economic growth. Previous researches mostly focus on the macro ievel and rely on standardization analyses, which lack sufficient data support.Relatively less research use the province-level data to examine the difference among local governments’land finance. However, taking into consideration the diversity of resource endowment and economic development level, it is necessary to consider the heterogeneity of local government’s behavior of obtaining land revenue and providing public goods supply.China’s land system allows local government to operate land supply through market mechanism.On the other hand, the fiscal system and political institution guarantee local government’s dominant position in the urbanization and stimulate institutional guarantee and dual incentives, land transfer revenues from the real estate market development, and then investment in public infrastructure, provide public goods to promote local economic growth and urban growth, has become the coincide choice under the background of local government targets. However the study in government financial behavior and public goods preferences consistent strong assumptions analysis problem, and neglect the influence of the realistic situation, on the one hand, the local government is faced with the same system background, system of fiscal decentralization and the inspection will be all put in the same promotion incentive system of local government; On the other hand, faced with different levels of natural endowments and economic development, local governments in land transfer revenue target selection, the direction of public expenditure structure has a considerable autonomy, so under the condition of institutional constraint and individual differences, different government land transfer income and realize public spending is probably not the same, instead there is difference in processes and results. Therefore study at the regional level identification of government land transfer income and how to carry out overall public spending variance analysis are very necessary. When focus on the government treasury activities from different area, the city management practice patterns implemented in a variety of city characteristic elements, what kind of impact on urban growth will also a problem worthy to be discussed.Relative to the normative analysis and experience in the aspect of macro system, analysis focused on how to obtain land revenue and the choice of public goods spending from the region or city level remains rare, issues related to identify different land finance options of local government policy objectives have important research value, so this article wants to put forward relatively independent but logically linked segmentation questiones to further expand:(1) What are the regional differences for government iand transfer revenue?(2)What are the structure and the regional difference for local government land transfer income to realize in practice of public goods spending embodies?(3) What kind of joint impact will be produced from the housing price and public goods in urban growth under the government land finance operation mode?On the analysis of the three questions. the main content and conclusion of this study included:(1) The provincial level on land revenue for the analysis and research of the regional differences, using multivariate statistical techniques of cluster analysis and qualitative reference literature identified in China, there are four areas for land transfer revenue structure differences: Super-large metropolitan area:represented by Beijing and Shanghai;Coastal developed area:Guangdong, Tianjin, Jiangsu, Zhejiang, Fujian, Hainan, Shandong;Moderate developing area:Shanxi. Neimenggu, Heilongjiang, Jilin, Liaoning. Anhui, Henan,Chongqing, Hubei, Hunan, Hebei;Western backward areas:Ningxia. Jiangxi, Guangxi, Sichuan, Yunnan, Guizhou, Tibet, Shaanxi. Gansu, Qinghai, Xinjiang.The government’s fiscal intention and policy objectives determine the way of government land transfer revenue structural differences, the different obtained local government land transfer revenue reflect the choice and focus on their direction.Super-large metropolitan area:the area government’s main goal is to secure high land sales revenue, so in order to sustain high land price need to control the supply of land quantity, the higher land prices will lead to further government deliberately depress land supply.Coastal developed area:In this area government’s main goal is to obtain the tax revenue from the growth of the real estate and construction, the pursuit of the construction scale of tax revenue need to increase the transfer of land, so by expanding under the incentives of local government land supply, extravagance and scale of urban construction to realize the tax revenue growth, at the same time the formation of the area of land supply of the previous period will also affect the current supply decision-making.Moderate developing area:pursuing land transfer revenue and tax income at the same time in this area, real estate and construction industry and keeping land price level had the opposite direction to expand the scale of land transfer, the former need to restrain land transfer scale, the latter need to expand land transfer scale, the actual land transfer scale was the comprehensive consideration of the above choice of target implementation.Western backward areas:the capital competition to the region do not meet the condition to maintain high land prices with depressing land supply, so the local government’s main goal is to achieve the construction and real estate tax revenue, the pursuit of tax revenue expansion of construction scale led to the increase of the quantity of land supply, produce the land transfer expansion.(2) Local government land revenue expansion has promoting effect on the public goods supply, but there are significant structural and regional differences.Analysis results show that the land revenue significantly promoted the infrastructure spending per capita and per capita general expenditure level of public service, and did not support past point of view of fiscal spending only prefer infrastructure construction. Land transfer income may. to some extent make up the gap for the budget revenue and expenditure, to fill the deficiency of the public expenditure budget, expenditures led increase for municipal infrastructure construction project as a representative type of public goods, or general education, medical care and social security represented by the type of public goods, public services had played a positive role in promoting the public investment. At the regional level concrete manifestation is:Super-large metropolitan area:land revenue preferred public service more than infrastructure construction, local government use more part of the land transfer income to the public service, rather than to increase capital input to the infrastructure construction.Coastal developed area:the coastal developed area land revenue shows spending on public services and public infrastructure synchronous ascending trend, although government infrastructure spending is still popular, but the area of phase characteristics prompted public service steady rise in government spending on public goods.Moderate developing area:the overall level of land transfer income has to promote the two types of public goods spending, but after considering the specific differences between provinces, infrastructure class show obvious inclination trend, while no significant relationship with the public service spending. Western backward areas:land transfer income showes the infrastructure tilt trend, but the influence degree is weak to moderate developing area; Basically, land transfer income has no impact on the public service spending, and there is a clear structural distortion from land transfer income for public spending.(3) The level of public goods and housing prices respectively have important influence on urban growth in the role of agglomeration and dispersion forces direction. By Gleaser model study of285cities in China, in the urban spatial expansion, the land price, represented by real estate prices has played a negative effect on growth of cities, the public goods supply has effective influence on the urban space extension, education, health care, transport and infrastructure is the driving force for the city development effectively, cultural facilities and communications public goods will restrict the urban space development, in the aspect of urban no spatial growth, real estate prices significantly depressed the increase of population in urban agglomeration, and whose effect on economic growth is not obvious according to the significant levels; Urban roads, communication facilities.culture, education and health care will significantly reduce the population growth expansion, increase traffic supply can improve the urban population growth. Public goods supply for the promotion of economic development is not ideal enough.Current mode of urban growth lead to the incongruity development of population and economic growth, the reality of urban growth didn’t realize the rational growth of optimization.(4) Qianjiang new city as a representative case study presents the local government land management behavior and choices in the coastal developed areas. Through analysis from the process of land revenue for various management, construction investment flow analysis and specific content analysis of urban growth established by the new city management committee, we found better support of the empirical research conclusion in generating revenue, public goods supply and urban growth. The academic value of this study and the innovation points mainly concentrated in the following four points:(1) Obtain the regional difference of land transfer revenue to local government research manifest the differences of land transfer revenue groups, found the choice of government land transfer under different area condition, enriched the related theory of Chinese differentiation of land finance.(2) In this paper, the research of the structure of regional public expenditure investment decisions and regional differences provide a novel perspective, focusing on the new land transfer revenue impact on the public goods supply, local government land transfer income used in the implementation of public goods spending practice reflects the structure and the regional difference through the empirical analysis, provides the reliable empirical evidence.(3) This study helps to provide public goods and housing prices affect urban growth research analysis framework based on China situation. The analysis showed the need and necessity of house prices and public goods together to effect the China’s urban growth, provide the study of Chinese scene matching for the relevant theoretical and empirical research to.(4) In this paper, the correction of Gleaser models applied in China has a certain contribution, in this paper, by constructing urban area as characterization form of urban growth, put population and GDP in the same simultaneous equation, we set a more appropriate Chinese reality environment improvement of Gleaser urban growth model, and promote the matching effect of empirical analysis of the model and China’s urban growth scenarios.In addition, this paper has a certain practical significance for understanding of the close ties between public goods supply, land transfer income access and the regional characteristics, evaluation the combined impact of public goods and housing prices for urban growth, and we also discussed the certain enlightenment function of "crowding out" and "transfer effect" for land financial income.