The Influence Of Land Transfer On Industrial Structure And Government Revenue Based On The Empirical Study In Eastern China

The rapid increase in land sale revenues has both positive and negative effects.From a positive perspective,the establishment and development of the regulation of land transfer system could efficiently increase land value by optimizing the use of land resource.It also may facilitate the development of real estate and materials industries,which eventually could increase the fiscal revenues and strengthen infrastructure construction,medical care and education conditions.However,the local revenues may largely rely on incomes from land transfer,leading to a so called "land finance phenomenon'.It may scarify the rights and interests of others,such as farmers and envirornments.The impact of land sale incomes on local economic development is a topic of concern for the whole society.Therefore,this work tried to study this topic by using data in a region form Eastern China as an example.This work studied the impacts of land transfer income on industrial structure,local government expenditure,and local fiscal gap,through using multiple panels of data in a region in Eastern China.In summary,the impacts could be concluded in the following aspects:First,the land transfer income in the eastern region has a significantly negative effect on the structure of the tertiary industry,but has no significant impacts on the structure of the primary and secondary industries based on the dynamic panel GMM model analysis.Second,the land transfer income in the eastern region has no significant impacts on local government fiscal expenditure,which is unexpected.This may be attributed to the facts that the current land transfer income is a part of the local government's income,but this part of the income also needs to be certain.The expenditure is based on,and the land sales income is also affected by central policies.Third,the land transfer income in the eastern region has a significant negative impact on the local fiscal gap,which is consistent with the research hypothesis of this paper.It suggests that the increase of land transfer income is associated with reduction of local government's fiscal gap.At the same time,the level of economic development has a significant positive impact on the local fiscal gap The result could be explained by the fact that local economic development is inseparable from the supports of government fiscal expenditure.