Research On The Effect Of Land Finance On Economic Development

Land finance is an important means for local governments to raise funds for construction and development.It is also an important perspective to understand the rapid growth of China’s economy.The government pays more attention to land finance,has introduced policies to adjust the proportion of land transfer income used in agriculture and rural areas,and transfer the transfer fee collection units.Based on this situation,it is significance to evaluate the effect of land finance on economic development,and explore the trend of the relationship between land finance and economic development.This paper selects land financial policy as the main research object,trying to evaluate the effect of land finance on economic development.Based on the connotation of high-quality development,this paper selects the panel data of 284 cities from 2003 to 2017 to make a static and dynamic evaluation of the effect of land finance on economic development.In the specific analysis,the paper first demonstrates the causes of land finance from the perspective of financial pressure,development pressure and assessment pressure;Secondly,it constructs the evaluation index system of economic development,and makes a static evaluation of the relationship between the economic development and land finance.Then the threshold regression model is used to test the relationship between land finance and economic development,which proves that the effect of land finance on economic development is gradually decreasing.Finally,the paper examines the relationships between land finance and economic development at different development stages.The results show that,in general,land finance has a significant but complex and periodic effect on economic development.There are both positive spatial spillover effects on social economy and negative effects on environmental pollution,and the effects of land finance are different at different development stages.In the first and middle stages,it significantly promotes economic development.Moreover,land finance has a significant threshold effect on economic development,and the marginal utility of land supply over a certain threshold value on economic development decreases.The analysis of the reasons for the development of land finance proves that the theory of fiscal decentralization promoting the development of land finance is still valid,and that land finance helps to improve the dominant index of the tournament.It can be carried out from the following aspects,First,land finance is the result of many factors.Under the pressure of fiscal decentralization,deficit,performance appraisal and economic growth,local governments choose land finance to develop local economy.The results show that the pressure of revenue and expenditure gap and vertical imbalance caused by fiscal decentralization are the important reasons for land transfer.In addition,in the pursuit of rapid economic development,relying on land finance can help to improve the level of economic development and enhance the development advantage of local government in the competition.Second,land finance has a significant impact on economic development.Land finance can improve the level of intensive,coordinated and shared economic development,but has a negative impact on the level of environmental protection level of economic development.The land investment-centered mode and the land revenue-centered mode of land finance have different impacts on economic development.The effect of the land revenue-centered mode of land finance on intensive,coordinated and shared economic development is more significant.It has a positive spatial spillover effect on intensive,coordinated and shared economic development.Two modes of land finance generally show negative impacts on environment pollution,but the negative effect of the land investment-centered mode of land finance on environment is more significant.There is a“U” relationship between land revenue-centered mode and environmental pollution.In the short run,the land revenue-centered mode is conducive to the improvement of environmental quality.In the long run,the land revenue-centered mode will increase the risk of environmental quality deterioration.There is a significant positive correlation between the land investment-centered mode and pollution emissions.The land investment-centered mode will significantly aggravate pollution emissions.Third,the effect of land finance on economic development have differed in each stage of development.This different effect has been confirmed from two aspects.First,the results indicate that land finance has a threshold effect on economic development,and there is a single threshold value.The ratio of land transfer income to general budget income has double threshold effect on economic development.The change trend of coefficient value confirms that the contribution of land finance to economic development is decreasing;Second,the effect of land finance on economic development exhibits different characteristics in different stages of economic development.The results show that land finance plays the most significant role in promoting economic development in the middle and late stage of industrialization,and the relationship between finance and economic development has changed in the later stage of industrialization.The higher the development stage of the city,the positive effect of land finance on economic development has not increased,but will have a negative impact.