Institutional Sources of Reform: The Diffusion of Land Banking Systems in China

Yanlong Zhang

Management and Organization Review, 2012, vol. 8, issue 3, 507-533

Abstract: An important change in China's urban land management system is the diffusion of land banking systems – official agencies that govern local land conversions, preparation, and transactions. In this article, I draw on neoinstitutional theory in organizational studies to explore the forces that promote this transformation. I propose-besides rational calculations and indigenous impetus for reform, institutional forces that play a crucial role in accelerating the diffusion process. Event history analysis shows that, over time, local economic characteristics have a declining effect on the adoption of land banking systems and gradually yield to pressure from peer cities, provincial governments, policy professionals, and policy-making communities. Moreover, intergovemmental fiscal arrangements and political status moderate the effect of provincial pressure.

Date: 2012
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