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Harnessing the Forces of Urban Expansion –The Public Economics of Farmland Development Allowence

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  • Chau, Nancy H.
  • Zhang, Weiwen

Abstract

For decades, rapid urban expansion has led to concerns over the loss of cultivated land in rural China. Less well known is the fact that development of newly cultivated land has in fact consistently exceeded land conversion from 1999-2006. This paper provides an analytical model that makes sense of this observation, featuring scal decentralization, local governments as custodians of land use and land development, as well as a land development allowance policy put in place in 1998. The model shows how a land development allowance policy can harness and redirect the forces of urban expansion to encourage agricultural land development.

Suggested Citation

  • Chau, Nancy H. & Zhang, Weiwen, 2010. "Harnessing the Forces of Urban Expansion –The Public Economics of Farmland Development Allowence," Working Papers 126964, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudawp:126964
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    References listed on IDEAS

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    Cited by:

    1. Dennis Rodgers & Jo Beall & Ravi Kanbur, 2011. "Latin American Urban Development into the 21st Century Towards a Renewed Perspective on the City," WIDER Working Paper Series 005, World Institute for Development Economic Research (UNU-WIDER).
    2. Wen Wang & Fangzhi Ye, 2016. "The Political Economy of Land Finance in China," Public Budgeting & Finance, Wiley Blackwell, vol. 36(2), pages 91-110, June.
    3. Khantachavana, Sivalai V. & Turvey, Calum G. & Kong, Rong & Xia, Xianli, 2013. "On the transaction values of land use rights in rural China," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 863-878.

    More about this item

    Keywords

    land development allowance; fiscal decentralization; inter-jurisdictional competi- tion; agricultural development.; Community/Rural/Urban Development; Land Economics/Use; Public Economics; H11; H77; P35; R5; R14; H11; O18;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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