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Has the monetary resettlement compensation policy hindered the two-way flow of resources between urban and rural areas?

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  • Bao, Haijun
  • Xu, Yueling
  • Zhang, Wenyu
  • Zhang, Shuai

Abstract

The reasonable two-way flow of resources between urban and rural areas underlies the processes of urban-rural transformation and rural revitalization in China. The monetary resettlement compensation policy has been formulated to promote this two-way flow through market-oriented measures. This study extends the Theory of Planned Behavior by enhancing the variable of monetary resettlement compensation factor to analyze the behavioral tendencies of house purchase intention of relocated households in Zhejiang Province, China. An empirical analysis through PLS-SEM was conducted on the results obtained from 271 survey responses, and eight hypotheses were verified using SmartPLS 3. The results demonstrate that the monetary resettlement compensation policy may facilitate relocated households’ purchase of houses in urban areas, which is indicative of compensation flowing back from the rural to urban areas through the house purchase behavior. Furthermore, a study on the possible gap between relocated households’ purchase intention and their actual purchase behavior shows that the intention is aligned with actual action. The monetary resettlement compensation policy has thus failed and even hindered the achievement of a reasonable two-way flow of resources between urban and rural areas.

Suggested Citation

  • Bao, Haijun & Xu, Yueling & Zhang, Wenyu & Zhang, Shuai, 2020. "Has the monetary resettlement compensation policy hindered the two-way flow of resources between urban and rural areas?," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837719320745
    DOI: 10.1016/j.landusepol.2020.104953
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    1. Tan, Zhengxun & Tang, Qianqian & Meng, Juan, 2022. "The effect of monetary policy on China’s housing prices before and after 2017: A dynamic analysis in DSGE model," Land Use Policy, Elsevier, vol. 113(C).
    2. Rui Yao & Jianping Ye & Lei Song, 2023. "The Impact of the Rural–Urban Migration of Chinese Farmers on the Use of Rural Homesteads: A Threshold Model Analysis," Land, MDPI, vol. 12(7), pages 1-27, July.
    3. Chengxiang Wang & Zehua Pang & Chang Gyu Choi, 2023. "Township, County Town, Metropolitan Area, or Foreign Cities? Evidence from House Purchases by Rural Households in China," Land, MDPI, vol. 12(5), pages 1-18, May.
    4. Kunpeng Wang & Minghao Ou & Zinabu Wolde, 2020. "Regional Differences in Ecological Compensation for Cultivated Land Protection: An Analysis of Chengdu, Sichuan Province, China," IJERPH, MDPI, vol. 17(21), pages 1-16, November.

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