How Land Finance Drives Urban Expansion under Fiscal Pressure: Evidence from Chinese Cities

Tong De, Jun Chu, Qing Han and Xuan Liu
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Tong De: Laboratory for Urban Future, Peking University Shenzhen Graduate School, Shenzhen 518055, China
Jun Chu: Laboratory for Urban Future, Peking University Shenzhen Graduate School, Shenzhen 518055, China
Qing Han: Laboratory for Urban Future, Peking University Shenzhen Graduate School, Shenzhen 518055, China
Xuan Liu: Department of Urban Management, School of Public Affairs and Administration, University of Electronic Science and Technology of China, Chengdu 611731, China

Land, 2022, vol. 11, issue 2, 1-15

Abstract: Urban expansion is commonly attributed to market-oriented forces, while public finance factors connected to government forces, especially land finance, in China’s institutional environment, can provide a more interesting explanation. Using a fixed-effect threshold model, the relationships of land finance and differing local fiscal pressures to urban expansion in China were explored mathematically and empirically. It was found that land finance positively and significantly influences urban expansion. It was also found that the impact of land finance on urban spatial size varies with fiscal pressure. Results suggested that capital flows in the process of urban expansion should be carefully regulated by local governments.

Keywords: land finance; fiscal pressure; urban expansion; fixed threshold model; China (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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