Study Of The Influence Of Land Finance On Local Economic Development

With the implementation of the reform and opening-up policy for more than 30 years,socialist market economy system has been gradually improved.As a result,the value of the land as the basic production factor has been fully reflected and land granting price has been gradually increased.Depending on the development mode of "land finance",local government is deprived of the great financial pressure and have large amount of money for urban construction and public social spending,which puts forward the development of industrialization and urbanization and realizes the stable development of local economy.Although great achievements have bee obtained,the development mode which excessively depends on land has generated many problems,such as food security crisis,housing price bubble,unbalance of industry structure,forced relocation and the sharp intense relationship between officers and ordinary people.The coming out of these economic and social problems has made many scholars denounce the development mode of "land finance".Based on the consultation of the researches on "land finance" and the systematic analysis of the research condition,this thesis makes an theoretical exploration of the reasons for the generation of "land finance".Although fiscal revenue management system and the GDP-centered evaluation system of political achievement greatly contribute to the generation of land finance,the root cause comes from the government management and control of land property right system.With positive analysis this thesis explores the interactive relationship between land finance and local economy of 70 large and medium-sized cities in 2007-2012.The conclusion is that local economy's dependency on land finance has been gradually declined.In other word,land finance has made less and less contribution to economic growth.However,during the transitional period of tax transfer,with the government's rigid expenditure demand and debt repayment pressure,it's a need to attach importance to any assistance to economic development and make great efforts to maximize its effect.Thus within certain period in near future it's necessary to continue to make use of "land finance" to some extent.In the end,this thesis makes some suggestions for the reform of "land finance" in the future.On the premise of ensuring the fiscal revenue stability,it's a need to solve the problem of how to put forward the transformation development of "land finance" and release the risk of "land finance" in an effective way and eventually realize the sustainable development of social economy.Concretely speaking,these solutions such as intensifying the reform of financial and taxation system,perfecting the current land property right system,improving the evaluation system of political achievement and controlling land financing scale are quite feasible.