Essays On The Development Of Land Finance In China

Since the 1980s.with the establishment and reform of the land property right system and the transfer system of the state-owned land,land finance began to appear in the late 20th century,and after the 21st century,it showed explosive growth,which formed the dualistic fiscal pattern of the local government.Land finance has become an "engine" to promote economic development,at the same time the local government fell into the excessive dependence on land finance,which led to a series of problems.This paper first describes the concept,characteristics,development process and the causes of land finance.The development process is summarized as the initial stage of exploration,stage of establishment and development,stage of rapid growth.System resource,financial pressure,investment impulse,political incentive and the unfair distribution of land value are the causes of land finance.Secondly,this paper analyzes the scale and structure of land finance in China from 1999 to 2015.It is found that the growth trend of land finance has several different stages.The annual growth rate is much higher than that of public finance growth and economic growth in China.Since 2003,land finance has surpassed the level of 80%of local government revenue.Thirdly,the paper analyzes the positive effect of land finance through empirical and theoretical analysis.It is found that the promotion effect of land finance on economic growth is obvious.This part also demonstrates that the land finance plays a great role in the process of urbanization transformation and contributes to China's urban and rural infrastructure developing.Then,the paper analyzes problems of land finance,Land finance has three aspects of management problems such as vague definition,unfair distribution and lack of effective supervision.Land finance has also caused political distress,land corruption and political conspiracy and other political issues;triggered Housing prices and high inventory coexist,"de-industrialization trend",land financing risk and other economic problems;triggered the landless peasants living security issues,widening gap between rich and poor and other social problems.Finally,the paper puts forward the reform direction and policy suggestion of land finance.This paper argues that a series of measures to improve the current fiscal and taxation system should be adopted to gradually weaken the local government's excessive reliance on land finance and finally cancel the land finance and put forward four specific policy recommendations:reform the land management system,strengthen the land transfer revenue and expenditure management,improve the local government tax system,regulate local government financing behavior.