IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v10y2021i2p209-d502021.html
   My bibliography  Save this article

Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China

Author

Listed:
  • Mingyu Zhang

    (Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China)

  • Qiuxiao Chen

    (Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China
    School of Engineering, Zhejiang University City College, Hangzhou 310015, China)

  • Kewei Zhang

    (Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China)

  • Dongye Yang

    (Zhejiang Huanneng Environmental Technology Co., Ltd., Hangzhou 310012, China)

Abstract

To promote the harmonious human-land relationships and increased urban-rural interaction, rural collective-owned commercial construction land (RCOCCL) marketization reform in some pilot areas was a new attempt by the Chinese Central Government in 2015. In this areas, a novel interest distribution system was established with the land right adjustment and the corresponding local governments were likely to benefit through taxation and land appreciation adjustment fund. This study proposed the hypothesis that the RCOCCL marketization reform would improve local government revenue, and explored the actual effect based on panel census data of county-level administrative units from 2010 to 2018. We applied the difference-in-difference (DID) method to analyze the causal effect of this reform on fiscal revenue with 29 pilot areas selected as the treatment group and 1602 county-level units as the control group. The empirical results of the optimized DID robustness test models and the Heckman two-step method showed that the RCOCCL marketization reform does not have a significant impact because of lower land circulation efficiency, the transfer of land transaction costs, and the policy implementation deviations. Thus, weakening the administrative intervention of local governments in the RCOCCL marketization is essential to the land market development in China.

Suggested Citation

  • Mingyu Zhang & Qiuxiao Chen & Kewei Zhang & Dongye Yang, 2021. "Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China," Land, MDPI, vol. 10(2), pages 1-20, February.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:2:p:209-:d:502021
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/10/2/209/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/10/2/209/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Albertus, Michael & Espinoza, Mauricio & Fort, Ricardo, 2020. "Land reform and human capital development: Evidence from Peru," Journal of Development Economics, Elsevier, vol. 147(C).
    2. Lin, Boqiang & Jia, Zhijie, 2019. "Tax rate, government revenue and economic performance: A perspective of Laffer curve," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    3. Lechner, Michael, 2011. "The Estimation of Causal Effects by Difference-in-Difference Methods," Foundations and Trends(R) in Econometrics, now publishers, vol. 4(3), pages 165-224, November.
    4. Xie, Yong, 2019. "Land expropriation, shock to employment, and employment differentiation: Findings from land-lost farmers in Nanjing, China," Land Use Policy, Elsevier, vol. 87(C).
    5. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    6. Zhou, Lin & Zhang, Wenjia & Fang, Chenyu & Sun, Hanyue & Lin, Jian, 2020. "Actors and network in the marketization of rural collectively-owned commercial construction land (RCOCCL) in China: A pilot case of Langfa, Beijing," Land Use Policy, Elsevier, vol. 99(C).
    7. Tan, Rong & Qu, Futian & Heerink, Nico & Mettepenningen, Evy, 2011. "Rural to urban land conversion in China — How large is the over-conversion and what are its welfare implications?," China Economic Review, Elsevier, vol. 22(4), pages 474-484.
    8. Wang, Han & Wu, Xingyi & Wu, Di & Nie, Xin, 2019. "Will land development time restriction reduce land price? The perspective of American call options," Land Use Policy, Elsevier, vol. 83(C), pages 75-83.
    9. Pengjun Zhao & Mengzhu Zhang, 2016. "The Role of Villages and Townships in Informal Land Development in China: An Investigation on the City Fringe of Beijing," Sustainability, MDPI, vol. 8(3), pages 1-21, March.
    10. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    11. De Cesare, Luigi & Sportelli, Mario, 2012. "Fiscal policy lags and income adjustment processes," Chaos, Solitons & Fractals, Elsevier, vol. 45(4), pages 433-438.
    12. Dimitrovová, Klára & Perelman, Julian & Serrano-Alarcón, Manuel, 2020. "Effect of a national primary care reform on avoidable hospital admissions (2000–2015): A difference-in-difference analysis," Social Science & Medicine, Elsevier, vol. 252(C).
    13. Ngarava, Saul, 2020. "Impact of the Fast Track Land Reform Programme (FTLRP) on agricultural production: A tobacco success story in Zimbabwe?," Land Use Policy, Elsevier, vol. 99(C).
    14. Brittany Bunce, 2020. "Dairy Joint Ventures in South Africa’s Land and Agrarian Reform Programme: Who Benefits?," Land, MDPI, vol. 9(9), pages 1-21, September.
    15. Zhou, Yang & Li, Xunhuan & Liu, Yansui, 2020. "Rural land system reforms in China: History, issues, measures and prospects," Land Use Policy, Elsevier, vol. 91(C).
    16. Cao, Yu & Zhang, Xiaoling, 2018. "Are they satisfied with land taking? Aspects on procedural fairness, monetary compensation and behavioral simulation in China’s land expropriation story," Land Use Policy, Elsevier, vol. 74(C), pages 166-178.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dongshui Xie & Caiquan Bai & Huimin Wang & Qihang Xue, 2022. "The Land System and the Rise and Fall of China’s Rural Industrialization: Based on the Perspective of Institutional Change of Rural Collective Construction Land," Land, MDPI, vol. 11(7), pages 1-22, June.
    2. Duanshuai Shen & Xiaoping Zhou & Shuai Xie & Xiao Lv & Wenlong Peng & Yanan Wang & Baiyuan Wang, 2024. "Paths and Mechanisms of Rural Transformation Promoted by Rural Collectively Owned Commercial Construction Land Marketization in China," Land, MDPI, vol. 13(4), pages 1-23, March.
    3. Long Zeng & Jiazhou Yao & Ziqi Yi & Xinhai Lu & Yifeng Tang, 2025. "Evaluating the Impact of Rural Construction Land Marketization on Rural Industrial Integration," Sustainability, MDPI, vol. 17(9), pages 1-25, May.
    4. Yubo Wang & Yuyu Xue & Jianchao Xi, 2022. "Inter-Provincial Differences in Potential Obstacles to Land Transfer Income to Support Rural Revitalization in China," Land, MDPI, vol. 11(4), pages 1-18, March.
    5. Lin Zhou & Walter Timo de Vries & Alexandra Panman & Fei Gao & Chenyu Fang, 2023. "Evaluating Collective Action for Effective Land Policy Reform in Developing Country Contexts: The Construction and Validation of Dimensions and Indicators," Land, MDPI, vol. 12(7), pages 1-21, July.
    6. Lin Zhou & Walter Timo de Vries, 2022. "Collective Action for the Market-Based Reform of Land Element in China: The Role of Trust," Land, MDPI, vol. 11(6), pages 1-16, June.
    7. Pengrui Wang & Chen Zeng & Yan Song & Long Guo & Wenping Liu & Wenting Zhang, 2021. "The Spatial Effect of Administrative Division on Land-Use Intensity," Land, MDPI, vol. 10(5), pages 1-18, May.
    8. Lei Yan & Xubin Lei & Kairong Hong & Hui Li & Mengyuan Chen, 2022. "Improving Farmer Willingness to Participate in the Transfer of Land Rights in Rural China: A Preference-Based Income Distribution Scheme," Land, MDPI, vol. 11(3), pages 1-22, March.
    9. Jiali Liu & Hengwei Wang, 2022. "What Is Farmers’ Level of Satisfaction under China’s Policy of Collective-Owned Commercial Construction Land Marketisation?," Land, MDPI, vol. 11(8), pages 1-20, August.
    10. Shenjie Yang & Lanjiao Wen, 2023. "Regional Heterogeneity in China’s Rural Collectively Owned Commercialized Land Market: An Empirical Analysis from 2015–2020," Land, MDPI, vol. 12(2), pages 1-15, February.
    11. Zhang, Yihao & Liu, Yong & Yang, Qiaoran & Yue, Wenze, 2024. "Assessing performance and disparities in China’s land finance transition: Insights from neo-liberalism and neo-Marxism," Land Use Policy, Elsevier, vol. 146(C).
    12. Zou, Yucheng & Yan, Lei & Zhang, Yanwei, 2023. "Game analysis of incremental income allocation in the marketization of rural collectively-owned commercial construction land under fairness preference," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 1-14.

    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. Francesco Bartolucci & Fulvia Pennoni & Giorgio Vittadini, 2023. "A Causal Latent Transition Model With Multivariate Outcomes and Unobserved Heterogeneity: Application to Human Capital Development," Journal of Educational and Behavioral Statistics, , vol. 48(4), pages 387-419, August.
    2. Yuan Yi & Kaifeng Duan & Fang He & Yuxuan Si, 2024. "The Effects and Mechanisms of the Rural Homestead System on the Imbalance of Rural Human–Land Relationships: Evidence from the Yangtze River Delta Urban Agglomeration in China," Land, MDPI, vol. 13(2), pages 1-19, January.
    3. Michael Weber, 2016. "The short-run and long-run effects of decentralizing public employment services," ifo Working Paper Series 209, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Shenjie Yang & Lanjiao Wen, 2023. "Regional Heterogeneity in China’s Rural Collectively Owned Commercialized Land Market: An Empirical Analysis from 2015–2020," Land, MDPI, vol. 12(2), pages 1-15, February.
    5. Franziska Zimmert & Michael Zimmert, 2024. "Part‐time subsidies and maternal reemployment: Evidence from a difference‐in‐differences analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(6), pages 1149-1171, September.
    6. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," SOEPpapers on Multidisciplinary Panel Data Research 883, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Hervé Cardot & Antonio Musolesi, 2021. "Zero-inflated regression for unobserved effects panel data models and difference-in-differences estimation," SEEDS Working Papers 1121, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2021.
    8. Callaway, Brantly & Li, Tong, 2023. "Policy evaluation during a pandemic," Journal of Econometrics, Elsevier, vol. 236(1).
    9. Xu, Aiting & Song, Miaoyuan & Wu, Yunguang & Luo, Yifan & Zhu, Yuhan & Qiu, Keyang, 2024. "Effects of new urbanization on China's carbon emissions: A quasi-natural experiment based on the improved PSM-DID model," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    10. Kubo, Katsuyuki & Sasaki, Ryo, 2024. "The impact of a CSR committee on CSR performance," Japan and the World Economy, Elsevier, vol. 71(C).
    11. Verena Lauber & Johanna Storck, 2016. "Helping with the Kids? How Family-Friendly Workplaces Affect Parental Well-Being and Behavior," Discussion Papers of DIW Berlin 1630, DIW Berlin, German Institute for Economic Research.
    12. Kahuina Miller & Tetsuro Hyodo, 2021. "Impact of the Panama Canal expansion on Latin American and Caribbean ports: difference in difference (DID) method," Journal of Shipping and Trade, Springer, vol. 6(1), pages 1-23, December.
    13. Sant’Anna, Pedro H.C. & Zhao, Jun, 2020. "Doubly robust difference-in-differences estimators," Journal of Econometrics, Elsevier, vol. 219(1), pages 101-122.
    14. Christophe Loussouarn & Carine Franc & Yann Videau & Julien Mousquès, 2021. "Can General Practitioners Be More Productive? The Impact of Teamwork and Cooperation with Nurses on GP Activities," Health Economics, John Wiley & Sons, Ltd., vol. 30(3), pages 680-698, March.
    15. Haiyang Lu & Peng Nie & Alfonso Sousa-Poza, 2021. "The Effect of Parental Educational Expectations on Adolescent Subjective Well-Being and the Moderating Role of Perceived Academic Pressure: Longitudinal Evidence for China," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(1), pages 117-137, February.
    16. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 201211, University of Hawaii at Manoa, Department of Economics.
    17. Bahia, Kalvin & Castells, Pau & Cruz, Genaro & Masaki, Takaaki & Pedrós, Xavier & Pfutze, Tobias & Rodríguez-Castelán, Carlos & Winkler, Hernán, 2024. "The welfare effects of mobile broadband internet: Evidence from Nigeria," Journal of Development Economics, Elsevier, vol. 170(C).
    18. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    19. Sina Akbari & Negar Kiyavash & AmirEmad Ghassami, 2025. "Semiparametric Triple Difference Estimators," Papers 2502.19788, arXiv.org, revised Mar 2025.
    20. Li, Daiyue & Jin, Yanhong & Cheng, Mingwang, 2024. "Unleashing the power of industrial robotics on firm productivity: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 500-520.

    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:gam:jlands:v:10:y:2021:i:2:p:209-:d:502021. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.