Study On The Effect Of Land Finance On Urbanization In China

With the constant improvement of national land transfer system,land transfer revenue and land tax has become the important source of funds for the construction of cities.After the local government obtains land transfer revenue,land tax and other land finances,which was to invest in public infrastructure,and labor and capital inflows attracted by tax incentives and subsidies for land investment,then city grows.At the same time,the contradiction between land supply and demand is increasing,the scale of the city is expanding,and the waste of land is serious.Based on the analysis of the existing literature,this paper attempts to answer some issues:(1)Does the land finance have a positive effect on urbanization?What is the trend of the change of the role of land finance to urbanization?What is the difference between the different regions of our country?What is the difference between the different-sized cities?(2)Through what way does land finance affect the development of urbanization?What is the extent of the impact?(3)What are the restrictions that the land finance brings to the sustainable development of urbanization?How to promote the transformation of land finance?Based on the definition of the concept and literature review,this paper firstly constructs the theoretical framework of the relationship between land finance and urbanization,including the function mechanism,pathway and action effects.Secondly,it reviews the development of China's urbanization,the evolution of the land system and the rising of the land finance.Third,this article constructs an integrated indicator system that contains 10 indicators to measure the comprehensive level of urbanization and makes an empirical analysis of the relationship between land finance and urbanization.This analysis not only contains the overall analysis,but also contains sub period,sub regional,and sub scale analysis.Fourth,the article makes theoretical and empirical analyses of the main ways of the land finance acts on urbanization,including land finance and urban industries,land finance and economic public goods,land finance and people's livelihood public goods.Finally,on the basis of analyzing the requirements of sustainable development of urbanization,it elaborates the restrictions of land finance on sustainable development of urbanization,and puts forward some basic ideas of land finance transformation.In order to achieve the anticipated goal of the research,this article insists on the research paradigm of combination of theoretical research and empirical research in the study.The measurement methods are the global principal component analysis(GPCA),the ordinary least squares method(OLS),fixed effect analysis,random effects analysis,pooled OLS analysis,generalized least square method(FGLS),generalized method of moments(GMM).The tools used are Excel,SPSS,Stata and Mapinfo software.The main conclusions of this paper are:(1)The objectives of the city government include the promotion of urban economic growth,the provision of public goods and access to local fiscal revenue.As one of the targets of local government,land finance has created the conditions for the the other two objectives.Land finance affect urbanization mainly through the following three ways:by affecting urban industries,economic public goods and people's livelihood public goods.(2)Urbanization index system can be used to replace the urbanization index system,which can reflect the level of urbanization in our country.The comprehensive level of urbanization in China is increasing,and the difference between different cities is relatively large.(3)There is a significant correlation between urbanization and land finance of China.Overall,land finance has a positive effect on urbanization.By time-division empirical analysis,the land finance and urbanization presents an inverted U-curve relationship.The influence of land finance on urbanization in different regions is different.Influence coefficient in the eastern region is higher than that in the national,central and eastern China.The effects of land finance in eight comprehensive economic regions are significantly different.By distinguishing the cities by urban scale,it finds that influence coefficient in the large cities is the highest.Both land revenue and land tax contributes to the process of urbanization.However,with respect to the land revenue,the effect of land tax is more significant.(4)At present,land finance has an effect on urban industry,but not the same role in service industry.(5)Land revenue and land tax provide important sources of funds for urban economic public goods;also the required land resources are provided for economic public goods.(6)Relative to the land transfer revenue can significantly increase the supply of urban economic public goods,there is no evidence that it has the same effect on people's livelihood public goods.Compared with the land transfer revenue,the contribution of land tax to people's livelihood public goods is more obvious.At the same time,the area of people's livelihood public goods has a positive impact on some people's livelihood public goods.(7)Although the development of China's urbanization process can speed up in a period of time by relying on the land finance,but the lack of people's livelihood public goods will bring the limitation to the sustainable development of urbanization.The basic ideas of land finance transformation include:the control of land finance increment,the dissolution of land finance stock,and the construction of land financial compensation mechanism.