Study On The Mechanism And Effect Of Urban Space Production Driven By Land Finance

Chinese-style land finance reflects the interpenetration and interaction of capital, power, social justice and space problem. It not only strongly influenced and interfered the evolution process of the urban space's rapid expansion, and derived quite controversial social space features, even became very complicated in public opinion. On the basis of discriminating the two extremely different evaluations, this text thinks that we cannot simply abandon land finance, but should continuously upgrading or gradually retreating with the advance of urbanization.Based on the core argument above, this article taking the "capital urbanization" in the production of space as the theoretical foundation, reveals the power base, capital logic and spatial effect of land finance:(1) Local government in the institutional environment of economic transition and social transformation, coupled with a series of institutional changes such as tax federalism, land dual structure and housing commercialization, provided the power guarantee for land finance capital's motion, and lead to spatial expansion characteristics. (2) Land finance which supported the capital urbanization, can be subdivided into three circular relationship which are nested and boosting with each other: transferring industrial land at a low price in order to attracting investment, pursuing long-term benefits, paid transferring commercial services and residential land or land mortgage loan, achieving rapid primitive accumulation of capital, putting into public land for building infrastructure and providing public services, to boost land increment and optimize the urban function. But, the unbalanced distribution of land finance capital hides some crises including curing social differentiation and over-accumulated capital. (3) Corresponding to three cyclic paths of space capital, the urban space showed significant effects as follows:inefficient and spread-type expansion of industrial land, price inflation and internal unbalance of profit-oriented land, integral lifting and structural imbalance of urban public goods.To confirm the theoretical framework in macro-level, and provide the realistic basis for the necessity of land finance, this article selected Hexi new town in Nanjing as the case which is totally depended on land asset management to achieve the construction goal. Through Quantitative analysis and detailed process description, three cyclic paths of space capital give full play in the land revenue and expenditure of Hexi new town in 2002-2003:achieving the initial capital accumulation by real estate finance, seeking long-term industry tax revenue after 2005, as well as the supply of public goods which match with the various development stages. Although the land management of the government becomes more skilled, and supports the realization of encouraging spatial performance, But also faced the problems of excessive capital accumulation, distribution unequally of social wealth, government failure. Finally, this paper presents the core value paradox of Chinese-style land financial is fairness and efficiency, it completed the task of the previous capital urbanization, but need to shift the direction under the demands of new urbanization, thus proposed transformation strategies form norms for power, control of capital and regulation of space.This article can be summed up into 4 parts.Chapter ?:Introduction. This chapter includes research background, including relative definitions, and a review of the researches from domestic and foreign and so on. It starts from Chinese-style land finance's origin and catfight, to highlight the core position of this study, and through a systematic literature review, explaining the reason of selecting this theory.Chapter ?:Theory building. This chapter starts from the qualitative description of land finance's power base and growth characteristics, thus to understand the mechanism and effect of land finance for the urban space production, and construct capital cycle analysis framework of the space production, which reveals the financial capital's allocation mechanism, risk and significant spatial representation.Chapter ??Factual analysis. This chapter introduces Hexi new town case, observing that land finance is how to drive the urban space production from the micro-level detailed, and giving an objective evaluation of the financial logic, spatial effects, etc, in order to deeply understand the common ideas of new town land management.Chapter ?. Transition strategy. This chapter integrates the discusses in the theory and practice, describes the value paradox of land finance, thus proposed transformation strategies form the local government behavior and direction of capital flows and relevant measures of urban planning.