The Impact Of Land-transferring Payment On The Urban-rural Income GAP And Its Policy Thinking In Southwest Five Provinces

China implemented the tax-sharing system in 1994.The land-transferring fees increased significantly since the local governments toward to develop land finance under the financial pressure.From 1995 to 2016,the land-transferring fees has increased more than seven times.Although land finance has eased the local government's fiscal revenue difficulties,however,the high land-transferring fees results in the local government's highly reliance on land finance.The issue of the relationship between land-transferring fees and the income gap between urban and rural areas is a prominent issue in China's regional urbanization process.The study of this issue has extremely important practical significance for promoting the sustainable development of regional urbanization and gradually narrowing the income gap between urban and rural areas.The Land-transferring fees are treated as the "second fiscal" of local governments.While promoting urbanization and economic development,they also bring social problems that cannot be ignored.On the one hand,Land-transferring fees are an important component of real estate prices and are closely related to the fluctuation of house prices.With China's real estate industry has developed rapidly,scarcity of land has become increasingly prominent and housing prices keep rising.The real estate industry would be hard to maintain long-term and stable development with high housing price.The rise in house prices brings about wealth effects which only benefit the citizens,and bring citizens for high Value-added income in the fixed asset,that's further lead to income gap between urban and rural areas.Nowadays,Whether the land-transferring fees directly promotes the increase in house prices and then affects the income gap between urban and rural areas has become a hot spot in the society.On the other hand,the increase of the government's income by the land-selling has caused severe urban bias in fiscal expenditure's public expenditure.A large number of floating populations have failed to truly integrate into the cities and have formed a lagging �urbanization of population� by the "land urbanization" whichformed in the transfer of land.The "lagging non-urban population" cannot enjoy equal public welfare,because of the government's "scissor difference land price" land acquisition system forms a high-quality land differential rent and the seriously tilted towards the city on public goods,lead to the severe per capita capital gap and the income between urban and rural areas.Under the background of the new normal economy,China's fundamental social contradictions have undergone fundamental changes,the expansion of the urban-rural income gap is a departure from our common development goals.This article uses1998-2015 panel data of five provinces in southwest China(Guangxi,Sichuan,Guizhou,Yunnan,Chongqing).By building a simultaneous equation model to test the interrelationship between the house price fluctuations,the public expenditure and Urban-Rural income disparity,the Land-transferring fees with house price,public expenditure,and examining the comprehensive impact of land transfer fees on urban-rural income gap.The empirical results show:(1)the Land-transferring fees have a positive effect on urban-rural income gap;(2)there is a positive relationship between Land-transferring fees and house prices,promote the widening income gap between urban and rural areas in common,among them,house prices have a stronger indirect effect on the urban-rural income gap;(3)urban bias formed by the gap between urban and rural human capital investment levels,and form a positive impact on urban-rural income gap;(4)under the "GDP-only" development goals and growth incentives,increased levels of fiscal decentralization have led local government officials to invest more in urban economies and infrastructure,which lead to the city bias and promote the widening income gap between urban and rural areas.This shows that land transfer fees are an important factor in the widening income gap between urban and rural areas,and the issue of the relationship between land transfer fees and urban-rural income gap is a prominent issue in the process of regional urbanization in China.In foreign land revenue model experiences,American get "rent-type" land revenue model turn to "tax-type" land revenue model,Japan's "tribute-type" then "rent-type" finally turn to "tax-type" land revenue model,Britain's " tribute-type " turns to "tax-type " land revenue model,these all showed that the mode of land transfer should be adapted to the level of development of social productivity,and the�tax-type� land revenue model can ease the contradictions between urban and rural development caused by land transfer,also can content the further development needs of social productivity.Based on the experience of the America,Japan and the Britain,this paper proposes the following policy recommendations by focusing on the function mechanism of land transfer payments for urban-rural income gap and the requirements for urbanization development: First,weaken the bidirectional promotion effect and reduce the urban-rural income gap.On the one hand,combined with national conditions to boost the transformation of land revenue models,make the land revenue model turn to "tax-type",and control the development of land finance strictly;on the other hand,establish a stable and long-term mechanism for the real estate industry to weaken the wealth effect of the housing market.The second is to reduce the urban-rural investment gap and promote the fair development of urban and rural areas.On the one hand,cultivate rural human capital,reduce the investment gap between urban and rural areas and improve the competitiveness of rural development;On the other hand,considerate the development indicators comprehensively and weaken the bias of fiscal investment to increase the proportion of investment in rural areas in fiscal investment.The third is to establish a new assessment mechanism to promote the balanced development of urbanization and guide the balanced development of land urbanization and population urbanization.