Land Leasing and Local Public Finance in China’s Regional Development: Evidence from Prefecture-level Cities

Ran Tao, Fubing Su, Mingxing Liu and Guangzhong Cao
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Ran Tao: School of Economics at Renmin University of China, 59 ZhongguanCun Street, Haidian District, Beijing, 100872, China, rantao1972@ruc.edu.cn
Fubing Su: Department of Political Science, Vassar College, 124 Raymond Avenue, Poughkeepsie, New York, 12604, USA, fusu@vassar.edu
Mingxing Liu: China Institute for Education Finance Research, Peking University, Beijing, China, mingxingliu@pku.edu.cn
Guangzhong Cao: College of Urban and Environmental Sciences, Peking University, Beijing, 100871, China, caogzh@urban.pku.edu.cn

Urban Studies, 2010, vol. 47, issue 10, 2217-2236

Abstract: By analysing the evolution of local governments’ roles in different periods of China’s growth in transition, this paper explores local fiscal incentives to use subsidised land and infrastructure as key instruments in regional competition for manufacturing investment since the mid 1990s. Local land development behaviour is related to China’s current land use institutions and intergovernmental arrangements. On the basis of panel data covering prefectural-level cities from 1999 to 2003, the paper empirically identifies and compares the fiscal impacts of different forms of land leasing (by negotiation versus by auction/tender). Policy implications are drawn from this analysis, for the further reform of China’s urban land system and fiscal institutions.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:47:y:2010:i:10:p:2217-2236

DOI: 10.1177/0042098009357961

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