Research On Land Financial Issue Of Local Government

It has formed land capitalization led by local government and economic growthpattern based on the core of real estate. China’s unique land finance growscorrespondingly during the process of rapid development of urbanization and the landuse system reform since1980s. The so-called land finance refers to government fiscalrevenue and expenditure activity relied on land issue. With the growth of the nationaleconomy, land leasing earning scale is expanding gradually and the dependency degreeof the local government is getting stronger, especially since the beginning oftwenty-first century. The issue of land finance has drawn the extensive attention of thestate and all sectors of society, which has also been the topical issue in academic field.The land finance phenomenon has both advantages and disadvantages, and its positiveeffect is reflected in the acceleration of urbanization and enhancement of localgovernment fiscal capacity and its negative effect is reflected in the lost territory andunemployment of farmers, bubblization of real estate market tendency, the hidden riskof financial crisis and intergeneration unfairness in land resources wastes and utilization,etc.Because of the vast territory and great regional differences, this paper selects one ofthe underdeveloped areas-Shanxi Province as research object, makes in-depth anddetailed analysis of current situation and causes of Shanxi land finance, objectivelysummarizes the positive and negative effects the land finance brings to the developmentof Shanxi Province and do quantitative analysis by models based on the public financetheory, fiscal decentralization theory, land property right system and other relatedtheories by utilizing empirical analysis method, experiential summary method,comparative analysis method and a variety of methods. Finally, with it drawing on theland system at home and abroad, this paper puts forward the governance of Chineselocal government land finance issue, policies to realize the sustainable use of landresources, suggestions according to its characteristics in Shanxi Province and providevaluable reference experience to effectively solve the problem of land finance in otherprovinces.