Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China

Mingyu Zhang, Qiuxiao Chen, Kewei Zhang and Dongye Yang
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Mingyu Zhang: Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China
Qiuxiao Chen: Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China
Kewei Zhang: Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China
Dongye Yang: Zhejiang Huanneng Environmental Technology Co., Ltd., Hangzhou 310012, China

Land, 2021, vol. 10, issue 2, 1-20

Abstract: To promote the harmonious human-land relationships and increased urban-rural interaction, rural collective-owned commercial construction land (RCOCCL) marketization reform in some pilot areas was a new attempt by the Chinese Central Government in 2015. In this areas, a novel interest distribution system was established with the land right adjustment and the corresponding local governments were likely to benefit through taxation and land appreciation adjustment fund. This study proposed the hypothesis that the RCOCCL marketization reform would improve local government revenue, and explored the actual effect based on panel census data of county-level administrative units from 2010 to 2018. We applied the difference-in-difference (DID) method to analyze the causal effect of this reform on fiscal revenue with 29 pilot areas selected as the treatment group and 1602 county-level units as the control group. The empirical results of the optimized DID robustness test models and the Heckman two-step method showed that the RCOCCL marketization reform does not have a significant impact because of lower land circulation efficiency, the transfer of land transaction costs, and the policy implementation deviations. Thus, weakening the administrative intervention of local governments in the RCOCCL marketization is essential to the land market development in China.

Keywords: rural collective-owned commercial construction land; land system reform; policy evaluation; interest distribution; China (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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