Study On The Transition Of Urban Land Finance In China

Since twenty-one century, the land finance was gradually concerned by people and became a hot topic. As the land revenue scale continues to expand, local governments are increasingly dependent on the land finance, which raises some drawbacks. With the acceleration of urbanization, the demand of the construction funds becomes larger than before. If the situation that local governments are dependent on the land finance excessively can't be changed, it is bound to trigger a new "enclosure" boom and make the urban land sprawl rapidly, which constrains the sustainable development of urban economy. Therefore, how to reduce the dependency on the land finance and how to ensure local governments have sufficient fiscal revenues for the urban construction are serious problems that our country face at the present stage. Through the study on the transition of urban land finance, it can provide the effective measures to solve the problem, and has an important practical significance. This paper includes the main contents as follows:Firstly, describe the land finance development and evaluate the positive and negative effects that land finance caused by using Cobb-Douglas production function and curve fitting methods.Secondly, using partial correlation and multiple regression model, analyzing the influence of urban expansion on land finance.The finding reveals that the land finance is one of the factors that drive urban sprawl, and its explainability is lower than the factor of urban population. The city's rapid expansion constraints the sustainability of our land finance. The empirical research shows that the land finance is facing an unsustainable situation in the future.Thirdly, based on profound reason analysis caused by land finance, mainly include the reasons for local fiscal gap and monopoly on primary land market by local government, then the paper designs the route how to transform China's land finance mode.First, through observation and study from the international experience, the levy of property tax is undoubtedly the best choice for local governments to increase taxes, and the paper proposes the basic line of property tax reform in China., it draws two conclusions from simulation analysis of China's property tax levy:i, the proportion of property tax levy to tax revenue is higher than other taxes, so it can become the main local tax; ii, the property tax revenue can bring the local government sustainable and stable fiscal revenue, preventing the local fiscal gap enlargement.Second, the existing mode of land asset management can't change the situation that the local governments control the monopoly power on primary land market. The management mode not only caused severe loss of land assets, but also makes the residents'welfare level declining The corporatization of land asset management is inevitable trend of the transformation on land asset management mode. The corporatization mode can prevent local governments from operating the profitable land, and control of the loss of state-owned land assets effectively. Through the market mechanism, the land assets can realize the market value, which causes the local fiscal revenue increase.