IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v69y2017icp454-460.html
   My bibliography  Save this article

Land-based finance, fiscal autonomy and land supply for affordable housing in urban China: A prefecture-level analysis

Author

Listed:
  • Hu, Fox Z.Y.
  • Qian, Jiwei

Abstract

China’s booming housing market and the resultant skyrocketing housing prices in Chinese cities during the recent decade have led the Chinese government to step up its effort to provide affordable housing for low- and middle-income households. Despite the central government’s renewed policy focus on affordable housing program, the real pace of its development in urban China has been too sluggish to achieve its intended objective. Based on a panel dataset of land supply in Chinese cities at prefectural level and above during the period of 2009–2013, this paper examines the factors influencing urban governments’ commitment to land supply for affordable housing. It identifies an intriguing pattern characterizing the spatial mismatch between cities devoting a greater share of land for affordable housing and hotspot cities with severe housing affordability challenge. Cities with higher degree of dependence on land finance and higher level of fiscal autonomy were found to be less likely to devote land for affordable housing construction. The study suggests that the project of affordable housing provision in urban China cannot be successfully implemented unless local governments’ reliance on urban land-based interests are weakened.

Suggested Citation

  • Hu, Fox Z.Y. & Qian, Jiwei, 2017. "Land-based finance, fiscal autonomy and land supply for affordable housing in urban China: A prefecture-level analysis," Land Use Policy, Elsevier, vol. 69(C), pages 454-460.
    • Handle: RePEc:eee:lauspo:v:69:y:2017:i:c:p:454-460
    DOI: 10.1016/j.landusepol.2017.09.050
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837717309535
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2017.09.050?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chenggang Xu, 2011. "The Fundamental Institutions of China's Reforms and Development," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1076-1151, December.
    2. Zhang, Chuanchuan & Jia, Shen & Yang, Rudai, 2016. "Housing affordability and housing vacancy in China: The role of income inequality," Journal of Housing Economics, Elsevier, vol. 33(C), pages 4-14.
    3. Han, Li & Kung, James Kai-Sing, 2015. "Fiscal incentives and policy choices of local governments: Evidence from China," Journal of Development Economics, Elsevier, vol. 116(C), pages 89-104.
    4. Ya Wang & Alan Murie, 2011. "The New Affordable and Social Housing Provision System in China: Implications for Comparative Housing Studies," International Journal of Housing Policy, Taylor & Francis Journals, vol. 11(3), pages 237-254.
    5. Hsing, You-tien, 2010. "The Great Urban Transformation: Politics of Land and Property in China," OUP Catalogue, Oxford University Press, number 9780199568048, Decembrie.
    6. Jie Chen & Zan Yang & Ya Ping Wang, 2014. "The New Chinese Model of Public Housing: A Step Forward or Backward?," Housing Studies, Taylor & Francis Journals, vol. 29(4), pages 534-550, June.
    7. Youqin Huang, 2004. "Housing Markets, Government Behaviors, and Housing Choice: A Case Study of Three Cities in China," Environment and Planning A, , vol. 36(1), pages 45-68, January.
    8. Rong, Zhao & Wang, Wenchun & Gong, Qiang, 2016. "Housing price appreciation, investment opportunity, and firm innovation: Evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 34-58.
    9. Wen Wang & Xinye Zheng & Zhirong Zhao, 2012. "Fiscal Reform and Public Education Spending: A Quasi-natural Experiment of Fiscal Decentralization in China," Publius: The Journal of Federalism, CSF Associates Inc., vol. 42(2), pages 334-356, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jia, Junxue & Ding, Siying & Liu, Yongzheng, 2020. "Decentralization, incentives, and local tax enforcement," Journal of Urban Economics, Elsevier, vol. 115(C).
    2. Xiang Cai & Chin-Chang Tsai & Wei-Ning Wu, 2017. "Are They Neck and Neck in the Affordable Housing Policies? A Cross Case Comparison of Three Metropolitan Cities in China," Sustainability, MDPI, vol. 9(4), pages 1-16, April.
    3. Junxue Jia & Siying Ding & Yongzheng Liu, 2018. "Decentralization, Incentives, and Tax Enforcement," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1819, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Qiang Fu, 2016. "The persistence of power despite the changing meaning of homeownership: An age-period-cohort analysis of urban housing tenure in China, 1989–2011," Urban Studies, Urban Studies Journal Limited, vol. 53(6), pages 1225-1243, May.
    5. Ding, Haoyuan & Ni, Bei & Xue, Chang & Zhang, Xiaoyu, 2022. "Land holdings and outward foreign direct investment: Evidence from China," Journal of International Money and Finance, Elsevier, vol. 124(C).
    6. Wen, Qiang & Zhang, Teng, 2022. "Economic policy uncertainty and industrial pollution: The role of environmental supervision by local governments," China Economic Review, Elsevier, vol. 71(C).
    7. Chang Liu & Wei Xiong, 2018. "China's Real Estate Market," NBER Working Papers 25297, National Bureau of Economic Research, Inc.
    8. Wang, Yuan & Hui, Eddie Chi-man, 2017. "Are local governments maximizing land revenue? Evidence from China," China Economic Review, Elsevier, vol. 43(C), pages 196-215.
    9. Xiang CAI, 2018. "Determinants Of Affordable Housing Allocation: Common Perspectives From Local Officials," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 227-237, July.
    10. Qiang Fu, 2015. "When fiscal recentralisation meets urban reforms: Prefectural land finance and its association with access to housing in urban China," Urban Studies, Urban Studies Journal Limited, vol. 52(10), pages 1791-1809, August.
    11. Pi‐Han Tsai & Chien‐Yu Huang & Tsun‐Feng Chiang, 2020. "Fiscal Expenditure And Industrial Land Price In China: Theory And Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 593-606, October.
    12. Iris Claus & Les Oxley & Jie Chen & Xuehui Han, 2014. "The Evolution Of The Housing Market And Its Socioeconomic Impacts In The Post-Reform People'S Republic Of China: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 652-670, September.
    13. Fugang Gao & Huub Ploegmakers & Erwin van der Krabben & Xiaoping Shi, 2022. "Impacts of the political incentive for environmental protection on industrial land supply: Evidence from the cadre evaluation system reform in China," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 1001-1025, August.
    14. Cai, Meina & Liu, Pengfei & Wang, Hui, 2020. "Political trust, risk preferences, and policy support: A study of land-dispossessed villagers in China," World Development, Elsevier, vol. 125(C).
    15. Zhi Wang & Qinghua Zhang & Li-An Zhou, 2020. "Career Incentives of City Leaders and Urban Spatial Expansion in China," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 897-911, December.
    16. Juan Yan & Marietta Haffner & Marja Elsinga, 2021. "Inclusionary Housing: An Evaluation of a New Public Rental Housing Governance Instrument in China," Land, MDPI, vol. 10(3), pages 1-17, March.
    17. Lv, Bingyang & Liu, Yongzheng & Li, Yan, 2020. "Fiscal incentives, competition, and investment in China," China Economic Review, Elsevier, vol. 59(C).
    18. Junhong Bai & Jiayu Lu & Sijia Li, 2019. "Fiscal Pressure, Tax Competition and Environmental Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(2), pages 431-447, June.
    19. Liu, Yongzheng & Alm, James, 2016. "“Province-Managing-County” fiscal reform, land expansion, and urban growth in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 82-100.
    20. Harry X. Wu & Eric Girardin, 2016. "The ‘new’ normal is ‘old’ in China: Very late catching up and return to the (pre-WTO) old normal," EcoMod2016 9721, EcoMod.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:69:y:2017:i:c:p:454-460. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.