The Research Of Local Government Competition Impact On Land Market Development

To establishment of a standardized and efficient land market, is a necessary requirement for the protection and optimum allocation promotion of the land resource. Since 1978, when China began to explore land marketization reform, market mechanism has played an increasingly important role in the allocation of land resource. However, the problems in land market growth, such as low land marketization, market disorder and existence of invisible market, have been underlined day by day. Thereinto, the intervention by local government in the land market is considered as a vital factor impacts on the land market growth. Therefore, the perspective of local government competition is a primary breakthrough point for the research.In order to clarify the influence mechanism and function by local government competition in land market growth, this dissertation established an analytical framework of local government competition impacting on land market growth, through qualitative analysis including the essential characteristics and substance of the local government competition. Subsequently, the article investigated the influence mechanism by local government competition in land market growth from 4 aspects of local government finance,taxation,capita,institutional competition, and other four aspects, and then put forward 5 theoretical hypotheses:(1)the financial competition of local government is positively relevant to the reliance depth of local government on land and to the growth degree of land market; (2)the ability of tax discount that may not evident in reality, from local government, is restricted by financial revenue, and land tax functions negatively on land market development; (3)the capital competition of local government is positively relevant to the frequency of land into capital, and negatively relevant to the development degree of land market; (4)the institutional competition of local government causes institution imitation and element market segmentation, which hinders land market growth; (5)the institutional competition of local government causes supervision lack and land market disorder, which retards land market development.On the basis of 31 provincial panel data from 1999 to 2007, this dissertation empirically tested its hypotheses. The conclusion indicates that:(1) the financial competition of local government accelerates the land growth of land market, particularly the financial competition of provincial government relative to the reliance degree of government on land; (2)the tax revenue of local government has not stimulated government, to provide land tax preferential and functions negatively on land market growth; in the mean time, local government has various choices on different kinds of taxes, and land use tax has a positive influence mechanism on land market growth; (3)the capital competition of local government has a significant inhibitory effect on land market growth; the impetus of local government chasing capital is positive relevant to the function of absorbing capital through land; (4)the institutional imitation, in institutional competition of local government, is not evident; local governments'protection does not lead element market to separate in reality; the econometric result implies that element market grows well which promotes apparently; but the supervision by local government on institution accomplishment lacks of power, which causes land market disorder and hinders land market growth; (5) regarding to the other factors, the development level of society and economy most obvious, and the development of industrial structure also functions positively but not evident; meanwhile, land market growth is limited to regional diversity as well. The social economical development had the most apparent influence on that among other factors. In addition, industrial structure appeared a positive effect though not obvious. In the meantime, the regional distinctions were related to land market growth.Combined with the characteristics of each growth period in Chinese land market, local government competition will focus on land element, regarding to rare resource competition. Thus, to regulate the behavior of local government, to transfer the function of local government, and to establish positive mode and order of local government competition, are significant meaningful to the healthy, sustainable and efficient development of land market.