Multidimensional Analysis On The Economic&Social Influence And Rational Path Of Dalian Land Finance

The decade since the1990s, the "Three high" phenomenon appeared in the local urban economic development process, which are the high land revenue, the high land grant size and the high house prices, had become the focus of major media attention. Under the effect of the imperfect financial system and the official incentive mechanism which views the economic growth as the main evaluation indicators, the land revenue growth undoubtedly eased the dual pressures of financial and political achievements of the local government. However, different with the delectable land revenue, the high land grant size caused the increasing farmers’rights issues and problems of forced evictions, and the high house prices led to a serious shortage of housing affordability of residents and more and more "house slaves". They both had seriously affected China’s socialist harmonious society construction process. Especially under the current economic and social development background which "livelihood" is rising increasingly as the core, the ’Three high" increasingly subjects to a high degree of concern for all levels of government and scholars.On the surface, the sharp drop in the rural cultivated land issues, the issues of land-losing farmers’rights and interests as well as the problems of forced evictions are closely linked to the local government land finance. And the high house prices in urban seems to have a closer link with land finance. Therefore, many scholars have begun to reflect on the advantages and disadvantages of land finance and set off a debate. Although there is both favorable and unfavorable evaluation in the debate, the current majority of public attitude on land finance is negative, leading to a crusade against land finance. In the context of national media denouncing land finance, the swing development of Dalian land finance has also caused widespread concern in the community. In the analysis about the impact of land finance to Dalian’s economic and social development, there is positive evaluation about land finance’s affect to Dalian’s economic development, but more criticism about the series of problems and potential risks it caused. Many people think that the Dalian land finance has a close link to its recent irrational rises of urban house prices, the sharp drop in rural farmland, the issues of land-losing farmers’rights and interests and the problems of forced evictions, and the high dependency of Dalian’s fiscal revenue and expenditure on land finance also lead to the deterioration of its local finance.It is under the background of a specific system element and institutional factors that land finance in our country has formed, developed and finally evaluated into this controversial concept. Therefore, as an act of local government in the context of a particular system of China’s economic development mode, land finance gets its reality rationality. There is not much point in researching land finance only to discuss its pros and cons. In addition, as a local government behavior, the land finance effect, namely the effect on local economic development and the resulting problems is closely related to local specific development.Therefore, this article takes Dalian for example and analyses the role land finance has played in its economic and social development, and then makes an objective assessment of land finance. And on this basis, taking into account the realistic background that land finance can not be completely withdrawn in the short term, this article puts forward path choice and policy proposal for Dalian land finance reform, in order to provide guidance for its future development.Based on the theoretical basis of land finance as well as its connotation and essence, this article does both qualitative and empirical research on the interrelationship between the land finance and economic and social development situation of Dalian. According to the research, several views about Dalian land finance’s current development and its future way out and prospect are concluded as follows.(1)Dalian land finance has played an active role in its recent economic and social development and construction. This effect is, generally speaking, refers to the effect on the economic growth and the city development.(2)The contribution of Dalian land finance to its economic and social development is derived from the huge revenue and its impact on the relevant market. But in the final analysis, it stems from the continuous expansion of investment.(3) Land finance also caused some problems and risks to Dalian economic and social development, including the rising prices of housing as well as the fiscal and financial risks. But strictly speaking, the rise in house price of Dalian is not mainly due to land finance, it is a result of rising expectations.(4)Taken into account the basic role financial stability and security have played in the sustainable development of local economy and society, the problems and risks land finance brought about and will bring about outweigh the contribution it did. The reform of Dalian land finance development pattern is very necessary.(5)The complete process of land finance consists of three steps:purchasing&storage, operation and management. Taken the three steps into consideration, the Dalian land finance reform can follow the following path:execute the land reserving system strictly, strengthen the construction of the harmony of the land purchasing and storage; innovate the land transfer mode positively, reduce the land financial risks; effectively increase the land finance management efforts, enhance the economic and social benefits of land finance.