The Impact of Land Finance on Urban Construction Land Expansion in China—An Empirical Analysis Based on Provincial Panel Data

Sifan Tan, Yukuan Huang, Haotian Chen and Sheng Zheng ()
Additional contact information
Sifan Tan: Zhejiang University
Yukuan Huang: Zhejiang University
Haotian Chen: Zhejiang University
Sheng Zheng: Zhejiang University

Chapter Chapter 84 in Proceedings of the 28th International Symposium on Advancement of Construction Management and Real Estate, 2024, pp 1237-1248 from Springer

Abstract: Abstract Due to China's fast urbanization, the expansion of urban construction land has recently received significant academic attention, and the assessment of the effect of land finance on urban spatial development has been expanded. Even though the significance of land issues is well acknowledged, there hasn’t been much research done to analyze how land finance affects the expansion of urban construction land. Few studies have been completed at the macro level or on the variations in impacts among cities in different areas, and the research that has been done tends to be case studies from some typical cities. Using panel data from 29 provincial administrative units in China from 2008 to 2020, this paper introduces the two-way fixed-effects model to further explore the relationship between land finance and the expansion of urban construction land in China at the national and regional levels. According to the study's findings, local governments' incentive to grant extra-budgetary revenue makes them attempt to increase the scale of land finance through outward sprawl. This encourages the expansion of urban construction land. Further research reveals that there are large regional disparities in the impact of land finance on land expansion for urban development. Based on regional economic conditions, land finance has a significant positive impact on the expansion of urban construction land in the middle and western areas. Finally, appropriate policy implications are suggested based on the findings of the empirical analysis, including improving the land property rights system properly, enhancing the regulatory framework, and maximizing the potential of stock land, which have consequences for directing the orderly growth of cities and attaining sustainable urban development.

Keywords: Land finance; Expansion of urban construction land; Two-way fixed-effects model (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-981-97-1949-5_85

Ordering information: This item can be ordered from
http://www.springer.com/9789819719495

DOI: 10.1007/978-981-97-1949-5_85

Access Statistics for this chapter

More chapters in Lecture Notes in Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().