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Local officials as land developers: Urban spatial expansion in China

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  • Lichtenberg, Erik
  • Ding, Chengri

Abstract

We investigate conceptually and empirically the role of economic incentives in the primary land allocation in China in the recent years. A theoretical analysis demonstrates how recent fiscal and governance reforms give rise to land conversion decisions and long run urban spatial sizes that respond to economic incentives even though the allocation of land between urban and rural uses is determined administratively. An econometric investigation of China's coastal provinces finds that changes in urban area are increasing in the value of urban land and budgetary government revenues and decreasing in the value of agricultural land, results consistent with the theoretical analysis.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 66 (2009)
Issue (Month): 1 (July)
Pages: 57-64

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Handle: RePEc:eee:juecon:v:66:y:2009:i:1:p:57-64

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Web page: http://www.elsevier.com/locate/inca/622905

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  10. Li, Hongbin & Zhou, Li-An, 2005. "Political turnover and economic performance: the incentive role of personnel control in China," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1743-1762, September.
  11. Zhihua Zhang & Jorge Martinez-Vazquez, 2003. "The System of Equalization Transfers in China," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0312, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  12. Yuming Fu & Tsur Somerville & Mengdi Gu & Tongcheng Huang, 1999. "Land Use Rights, Government Land Supply, and the Pattern of Redevelopment in Shanghai," International Real Estate Review, Asian Real Estate Society, vol. 2(1), pages 49-78.
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Cited by:
  1. Feng, Juan & Lichtenberg, Erik & Ding, Chengri, 2013. "Balancing Act: Economic Incentives, Administrative Restrictions, And Urban Land Expansion In China," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149669, Agricultural and Applied Economics Association.
  2. Edward L. Glaeser & Stuart S. Rosenthal & William C, Strange, 2010. "Urban Economics and Entrepreneurship," NBER Chapters, in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
  3. Li, Lixing, 2011. "The incentive role of creating "cities" in China," China Economic Review, Elsevier, vol. 22(1), pages 172-181, March.
  4. Mototsugu Fukushige & Yingxin Shi, 2014. "Efficient Scale of Local Government in China: Quantile Regression Approach to County-Level Data," Discussion Papers in Economics and Business 14-15, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  5. Fan, Shenggen & Li, Lixing & Zhang, Xiaobo, 2012. "Challenges of creating cities in China: Lessons from a short-lived county-to-city upgrading policy," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 476-491.

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