IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v44y2007i1p81-98.html
   My bibliography  Save this article

Land Readjustment: An Innovative Urban Experiment in China

Author

Listed:
  • Ling-Hin Li

    (Department of Real Estate and Construction, University of Hong Kong, 5/F Knowles Building, Pokfulam Road, Hong Kong, lhli@hkucc.hku.hk)

  • Xin Li

    (Department of Real Estate and Construction, University of Hong Kong, 5/F Knowles Building, Pokfulam Road, Hong Kong, lixincat@hkusua.hku.hk)

Abstract

Conventionally, urban renewal initiated by the private sector is not that different from other trading activities. A developer purchases property rights from the suppliers, who are the property owners of the renewal site, in the open market for a price. Once the deal is done, the suppliers are out of the picture and the developer moves on to the renewal project and starts replacing the existing structure with new buildings for a better use. The developer would prefer not to have the individual owners involved in the renewal process for various reasons such as management problems and profit sharing. From an institutional economic perspective, this is a classic example of market governance structure as the asset is non-specific to a certain extent and the developer is not integrating the supplier (property owners) into the firm. However, on some rare occasions, the developer may adopt a bilateral firm governance structure by incorporating the individual property owners. This, in the context of rural land renewal, has been known as the land readjustment model. Based on the theoretical framework of institutional economics and transaction cost theory, this paper explores the rationale behind the developer and even the public authority choosing to adopt this model in the process of urban renewal by examining two examples in two very different cities in China.

Suggested Citation

  • Ling-Hin Li & Xin Li, 2007. "Land Readjustment: An Innovative Urban Experiment in China," Urban Studies, Urban Studies Journal Limited, vol. 44(1), pages 81-98, January.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:1:p:81-98
    DOI: 10.1080/00420980601023844
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420980601023844
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420980601023844?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
    ---><---

    References listed on IDEAS

    as
    1. David Adams & Alan Disberry & Norman Hutchison & Thomas Munjoma, 2001. "Managing Urban Land: The Case for Urban Partnership Zones," Regional Studies, Taylor & Francis Journals, vol. 35(2), pages 153-162.
    2. Chris Webster & Lawrence W.-C. Lai, 2003. "Property Rights, Planning and Markets," Books, Edward Elgar Publishing, number 2625.
    3. Asami, Y., 1995. "Evaluation of the shape of residential lots in land-readjustment projects," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 483-503, August.
    4. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    5. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    6. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    7. R.W. Archer, 1988. "Land Pooling for Resubdivision and New Subdivision in Western Australia," American Journal of Economics and Sociology, Wiley Blackwell, vol. 47(2), pages 207-221, April.
    8. Y Asami, 1995. "On the Evaluation of Residential Lots: With a Focus on Their Shape," Environment and Planning B, , vol. 22(2), pages 149-174, April.
    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. Lozano-Gracia, Nancy & Young, Cheryl & Lall, Somik V. & Vishwanath, Tara, 2013. "Leveraging land to enable urban transformation : lessons from global experience," Policy Research Working Paper Series 6312, The World Bank.

    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. LAI, Lawrence W.C. & DAVIES, Stephen N.G. & CHAU, K.W. & CHOY, Lennon H.T. & CHUA, Mark H. & LAM, Terry K.W., 2022. "A centennial literature review (1919–2019) of research publications on land readjustment from a neo-institutional economic perspective," Land Use Policy, Elsevier, vol. 120(C).
    2. Iavor Marangozov, 2005. "From Practice to Theory of the International Joint Ventures," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 44-77.
    3. Olivier Meier & Aurélie Sannajust, 0. "The smart contract revolution: a solution for the holdup problem?," Small Business Economics, Springer, vol. 0, pages 1-16.
    4. Wang, Sen & Bogle, Tim & van Kooten, G. Cornelis, 2012. "Forestry and the New Institutional Economics," Working Papers 130818, University of Victoria, Resource Economics and Policy.
    5. Maloney, Michael T., 2017. "Alchian remembrances," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 561-582.
    6. Marta Bakucz, 2011. "Tourism Value Chain Management as a Tool for Effective Tourism Destination Development The Case of Pécs ECoC 2010," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 46-63, June.
    7. Rao, Ramesh K.S., 2015. "The public corporation as an intermediary between “Main Street” and “Wall Street”," Journal of Corporate Finance, Elsevier, vol. 34(C), pages 64-82.
    8. Louis De Alessi, 1989. "The Effect of Institutions on the Choices of Consumers and Providers of Health Care," Journal of Theoretical Politics, , vol. 1(4), pages 427-458, October.
    9. Guilherme Fowler A. Monteiro & Bruno Varella Miranda, 2023. "Disentangling the role of the institutional environment in the ownership competence framework: A comment on Foss et al. (2021)," Strategic Management Journal, Wiley Blackwell, vol. 44(8), pages 1939-1954, August.
    10. Olivier Meier & Aurélie Sannajust, 2021. "The smart contract revolution: a solution for the holdup problem?," Small Business Economics, Springer, vol. 57(2), pages 1073-1088, August.
    11. Pietro Cunha Dolci & Antonio Carlos Gastaud Maçada, 2014. "Information technology investments and supply chain governance," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 18(2), pages 217-235.
    12. Jieming Zhu, 2005. "A Transitional Institution for the Emerging Land Market in Urban China," Urban Studies, Urban Studies Journal Limited, vol. 42(8), pages 1369-1390, July.
    13. Thomas Doleys, 2009. "Incomplete Contracting, Commission Discretion and the Origins of EU Merger Control," Journal of Common Market Studies, Wiley Blackwell, vol. 47, pages 483-506, June.
    14. Matthias Kiefer & Edward Jones & Andrew Adams, 2016. "Principals, Agents and Incomplete Contracts: Are Surrender of Control and Renegotiation the Solution?," CFI Discussion Papers 1603, Centre for Finance and Investment, Heriot Watt University.
    15. López Zapata, Esteban & García Muiña, Fernando Enrique & García, Susana María, 2019. "Analysing the relationship between diversification strategy and firm performance: the role of the economic cycle," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    16. Alley Ibrahim S. & Adebayo Abimbola L. & Oligbi Blessing O., 2016. "Corporate Governance and Financial Performance Nexus: Any Bidirectional Causality?," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 50(1), pages 82-99, June.
    17. Amar Gande & Kose John & Vinay B. Nair & Lemma W. Senbet, 2020. "Taxes, institutions, and innovation: Theory and international evidence," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1413-1442, December.
    18. Martinsons, Maris G. & Davison, Robert M. & Huang, Qian, 2017. "Strategic knowledge management failures in small professional service firms in China," International Journal of Information Management, Elsevier, vol. 37(4), pages 327-338.
    19. Mico APOSTOLOV, 2016. "Ownership And Control Structures A Case Study," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 8(2), pages 23-37, June.
    20. Kenneth Ayotte & Patrick Bolton, 2011. "Optimal Property Rights in Financial Contracting," The Review of Financial Studies, Society for Financial Studies, vol. 24(10), pages 3401-3433.

    More about this item

    Statistics

    Access and download statistics

    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:sae:urbstu:v:44:y:2007:i:1:p:81-98. 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: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    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.