Does Financial Excess Support Land Urbanization—An Empirical Study of Cities in China

Zhenghui Li, Fanqi Zou, Yong Tan and Jinhui Zhu
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Zhenghui Li: Guangzhou Institute of International Finance, Guangzhou University, Guangzhou 510006, China
Fanqi Zou: School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China
Yong Tan: Department of Accounting, Finance and Economics, Huddersfield Business School, University of Huddersfield, Huddersfield, Queensgate HD1 3DH, UK
Jinhui Zhu: School of Economics and Statistics, Guangzhou University, Guangzhou 510006, China

Land, 2021, vol. 10, issue 6, 1-17

Abstract: Most countries have experienced land urbanization, which is indispensable for financial support, especially for their financing function achievement through land appreciation and other channels in the urbanization process. By using 34 provincial capital (sub-provinces) cities in China as the sample, this paper studies the impact of finance on land urbanization construction based on the panel data from 2003 to 2018 under a differential GMM method; besides, the causes of excessive financial support and results generated on different regions are reported. Moreover, a moderate range of financial support for land urbanization is found under the influence of land finance. We obtain the following results: first, there is excessive financial support for land urbanization with regional differences exhibited; for instance, the eastern and central regions have an excessive financial support but the western region does not. Second, land urbanization with an excessive financial support correlates with financial efficiency, while the relatively large financial efficiency leads to the waste of a large number of financial resources. Third, financial support has a single and significant threshold effect on land urbanization construction, and finance has a promoting effect when land finance is less than the threshold value; otherwise, it has an inhibiting effect.

Keywords: financial support; land urbanization construction; land finance (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 (15)

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