The Research On The Effect Of Land Finance On The Urban Infrastructure Supply

Ever since the 1990s,Chinese infrastructure has made great achievements,especially the urban infrastructure has significantly improved.From the tax sharing reforms,the local government as the main supplier of urban infrastructure,stuck with insufficient external financing and so on,has made achievement that the supply of urban infrastructure has developed rapidly.The existing literatures mainly explain the reasons in the view of fiscal decentralization and political incentive,their theme is the political incentive as the main reasons for explaining the infrastructure investment preference,especially the land finance promotes the rapid development of urban infrastructure,ensures the capacity of urban infrastructure supply.However,the statistical data shows that,at the time of reform and opening and the tax sharing reforms,the growth of Chinese infrastructure stock and the GDP growth shows differently significantly.However,Chinese political promotion incentives and the main urban infrastructure supplier has not changed since 1978,therefore existing literatures cannot explain the difference of growth pattern of urban infrastructure before and after the tax sharing reforms,and it is impossible to explain the difference of local governments' attitudes towards the urban infrastructure supply.Considering that the tax sharing reforms and the supernormal development of urban infrastructure appears previously(1994),and the phenomenon of land finance appears afterwards(2000),the conclusion should be reacquainted that the land finance relieves financial pressure.Therefore,based on the effect of land finance on the supply of urban infrastructure,respectively from the effect of land finance on the preference of urban infrastructure investment?the effect of land finance on the satisfaction with urban infrastructure supply?the effect of land finance on the risk of urban infrastructure supply,this paper discusses the mechanism of land finance on urban infrastructure supply,and then give advice on improving the land financing.First,according to the characteristics of the development of land finance characteristics and characteristics of the development of infrastructure stock,it is concluded that the fiscal incentive is the main factor affecting the urban infrastructure supply,it reacquaints the relationship between the land finance and infrastructure supply,comes to a conclusion that the result of land finance is the impulse of infrastructure investment,analyzes the mechanism of the effect of land finance on the supply of urban infrastructure.Then,based on the city-level panel data from 2003 to 2014,the study finds that land finance significantly promotes infrastructure investment.Land finance plays a significant role in promoting infrastructure investment in central and western regions,while land finance has less significant impact on infrastructure investment in eastern cities.This shows that in the eastern region,the rising land cost?upgrading of reversed industrial structure?tightened land use policy?relative perfect market economy and so on reduces the complementarity between the land finance and the infrastructure supply,promptes the local government to reduce the dependence of urban infrastructure development on land finance,however,affected by the influence of urbanization and industrial transfer,the complementarity in central and western regions strengthens,so the impact of land finance on infrastructure investment is obviously positive in these regions.Secondly,this paper studies the effect of land finance on urban infrastructure supply.With the increase of urban infrastructure investment,people are demanding more and more for the overall implementation effect of the urban infrastructure,and the importance of social evaluation is gradually prominent.Currently land finance ensures the urban infrastructure investment,taking the social impact of urban infrastructure supply as the research object,this paper analyzes the influence of land finance on the satisfaction with urban infrastructure supply.Using China General Social Survey(CGSS),this paper investigates the influence of land finance on the satisfaction with urban infrastructure supply,finds that land finance improves the convenience of residents' life and the social evaluation of urban infrastructure supply by improving the efficiency of infrastructure investment,promoting economic growth and improving urban competitiveness.Thirdly,land finance ensures the capacity of local governments' supply in the process of supernormal development of urban infrastructure,however the characteristics of supernormal development of infrastructure also exacerbates the dependence of urban infrastructure supply on land finance,which leads to a series of negative effects.Considering the risk of land investment and financing,this paper takes financial risk as an example to discuss the debt risk caused by over-reliance on land financing,analyzes the transmission mechanism of local debt expansion and repayment risk caused by land finance,and examines the effect of land finance on bond rating and risk premium.This indicates that land finance,as the most important implicit guarantee controlled by local governments,has a significant impact on the issuance scale,bond rating and government default risk,which leads to the debt expansion and aggravation of debt risk.Fourthly,the paper takes fully consideration of the background of new-type urbanization construction and land supply-side reform,and analyzes the important task of land finance investment and financing mode facing adjustment and transformation.This requires on the one hand to carry out the market-oriented reform of urban infrastructure supply,introduce social capital participation,reduce the dependence on land finance,and reduce the financial pressure of urban infrastructure financing;on the other hand,it is necessary to change the public performance evaluation mechanism,improve the government governance structure,reconstruct the fiscal decentralization system,optimize the pattern of interests between central government and local government,and improve the land property rights system and land management system.Based on the above conclusions,this paper argues that the real cause of land finance is the impulse to infrastructure investment,considering that the growth competition and political competition will exist for a long time in the context of decentralization.Under the impact of the current real estate market regulation policies and the constraints of land resources,it is necessary for local governments to carry out reforms on land finance-related systems and mechanism of urban infrastructure supply,it is also necessary to break the monopoly of local governments on land factor market and reduce the dependence of urban infrastructure investment on land finance.At the same time,it is necessary to weaken the importance of infrastructure in the process of growth competition after the tax sharing reforms,advocate diversified participation of urban infrastructure suppliers,reduce supply pressure of local governments,and improve the efficiency of urban infrastructure supply.