The Impact Analysis Of Land Finance On Land Urbanization

This paper studies the influence of land finance on land urbanization and its effect mechanisms, points out the importance of moderate land development of urbanization on the basics of the Smart Growth theory, theory of moderate scale of land, coordination theory and theory of sustainable land use. Also, analyzing the problems brought by the rapid development of urbanization on the background finance. Through the analysis it shows that land finance mainly through three mechanisms promotes the process of land urbanization. On one hand, land finance would directly lead local government to requisition land and sell land, which essentially is the process of land urbanization; on the other hand, land finance would push up land prices and housing prices, which will inevitably promote the real estate enterprises to buy more land and the government sale more land; In addition, land finance provides infrastructure construction capital for local governments and drives economic growth and the development of relevant industries, which would bring new land demand and promote the land urbanization.Using empirical research by building the model and econometric analysis with STATA software with provincial panel data from 2004 to 2013 of 30 provinces, taking the land finance as the explanatory variable, land urbanization as explained variable, and setting the level of economic development, industrial structure and population urbanization as control variables, this paper gets the results and shows that land finance, population urbanization and economic development all have remarkable positive influence on land urbanization while the industrial structure has negative correlations with land urbanization. The rapid development of land urbanization brings many problems, such as irrational land use structure, the contradiction between supply and demand of land resources, the damage to the interests of farmers and the ecological environment destruction, etc. In order to alleviate the disadvantages brought by the rapid development of land urbanization and promote healthy and sustainable development of cities, we must carry on reform actively by making scientific land planning, improving land requisition system, reforming government performance evaluation system and issuing government bonds, etc.