State-owned Land To Sell Under The Competition Area And Convergence Of Economic Growth In China

In the past thirty years, China has experienced rapid economic growth and profound economic structural reforms. In the reforming process of transiting from a centrally planned economy to the new market economy, annual growth rate of Chinese gross economy maintains over9.8%. The rapid growth of the economy has generally improved people’s income level and living condition, and has simultaneously promoted the growth of social welfare. But there are great economic disparities between different areas in China. A related study indicated that the Theil index of China’s personal GDP in different provinces had increased from0.028in1978to0.061by2008. Since difference of regional economy growth speed results in regional economic disparity, we look forward to researching on the factors that affect regional economic growth.It is universally agreed in theory circle that the local government plays an important role in the process of economic growth. Local governments have played an irreplaceable role in accelerating the regional marketing process through spontaneous system innovation, in attracting capital investment by infrastructure construction, as well, and in being involved in the operation and management of local enterprises directly. In the main acts of local governments for promoting economy, the most notable one is the implementation of transferring state-owned land use rights since1987, which makes local government to provide a carrier for capital agglomeration in a very short period of time. In the meanwhile, land related income also greatly enriches the local government financial capacity. In addition, using land for industrial construction and commercial development industry accelerates the urbanization process, which is a very important motive force for improving economic growth in local area. Combined with the essential characteristic of China’s regional economic growth, which is regional rivalries dominated by the local government, this paper focuses on how the state-owned land transfer promotes regional economic growth and the formation of regional economic difference.Based on China’s state-owned land transfer system research and regional economic growth convergence of two aspects of the related literature, this paper has systematically listed theoretical frame related with the regional competition leading to massive state-owned land transfer, as well as the state-owned land promoting regional economic growth; sequentially, China’s history of state-owned land system evolution is reviewed as a whole. In the meanwhile, the evolutional characteristics and systematical differences of different regions have been particularly researched on; based on the above, this paper, on one hand, examines the existing situation of Chinese state-owned land and the regional differences, on the other hand, the convergence analysis method is introduced to describe the evolution of characteristics of Chinese regional economic characteristics, so as to establish the coupling relationship between initial; afterwards, establishing the convergence of regression model through extending the production function of the four elements, this paper has borrowed generalized moment estimation method (GMM) to more accurately check on the relationship between state-owned land transfer and regional economic growth convergence; in addition, the paper has respectively adopted Erfahrungsurteile and gambling model to proceed extending discussion on the following two topics:the motivation of different transfer of state-owned land in the background of regional competition, and violations of local government land under vertical management system.In order to better achieve the expected goal, this paper has adhered to normal forms of unifying historical and logical analysis, and combining theoretical and experiential research throughout the whole process. In the selection of calculating methods, the panel data model and the generalized moment estimation method (GMM), etc. are borrowed according to the content of the specific need. Additionally, the paper has also adopted a number of other mathematical methods, such as the extension of four elements of the CES production function, Gini coefficient, and Theil index calculation.This study helps to illustrate the high-speed growth of economy and the expansion of regional differences with the phenomenon of rapid urbanization. It also helps to explain the difference of state-owned land transfer by local governments, and the phenomenon of increasing land violations in recent years.