The Impact On Urbanization Of Land Financial Revenue

After system of compensated land use establishment in 1988 and the tax-sharing fiscal system reform in 1994,land transferring fees and related taxes have been an important source of government revenue,which becomes �land financial� in many places.Land financial revenue promotes the development of urbanization,but also generates the negative effect.Based on the analysis of causes of land financial revenue,the paper analyzed its mechanism to promote the development of urbanization and the negative effect.According to the data of Guangdong province from 1998 to 2013,this paper used co-integration,error correction model and Granger causality to testify the relationship between land financial revenue on the side and urbanization of population and urban constructed land acreage on the other side,and made impulse-response analysis and variance decompose analysis based on VAR model.The results show that a dynamic co-integration relationship exists between land financial revenue and urbanization of population and urban constructed land acreage and the mechanism of dynamic adjustment also exists.And that one of the causes of urbanization of population is land financial revenue and one of the causes of land financial revenue is urban constructed land acreage.Fluctuations in urban constructed land acreage is mainly attributed to the impact of its own,which is a far-reaching effect.The volatility of urbanization of population responsing from its own and land financial revenue is strong shock response.To avoid the negative impact of land finance on the urbanization process,we should change the government evaluation index system,transform the mode of economic development,deepen the tax system reform of the fiscal system and establish a unified urban-rural land market.