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

  • Chau, Nancy H.
  • Zhang, Weiwen

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.

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File URL: http://purl.umn.edu/126964
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Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 126964.

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Date of creation: 2010
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Handle: RePEc:ags:cudawp:126964
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  1. Tao Zhang & Heng-fu Zou, 2001. "Fiscal decentralization, public spending, and economic growth in China," CEMA Working Papers 58, China Economics and Management Academy, Central University of Finance and Economics.
  2. Swinnen, Johan F. M., 2002. "Land reform in Russia: constraints and policy implications," Economic Systems, Elsevier, vol. 26(2), pages 159-162, June.
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  6. Ding, Chengri & Lichtenberg, Erik, 2008. "Using Land to Promote Urban Economic Growth in China," Working Papers 36748, University of Maryland, Department of Agricultural and Resource Economics.
  7. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  8. Hui Wang & Ran Tao & Juer Tong, 2009. "Trading Land Development Rights under a Planned Land Use System: The "Zhejiang Model"," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(1), pages 66-82.
  9. Fan, Shenggen & Zhang, Xiaobo, 2004. "Infrastructure and regional economic development in rural China," China Economic Review, Elsevier, vol. 15(2), pages 203-214.
  10. Zhang, Xiaobo & Mount, Tim D. & Boisvert, Richard N., 2000. "Industrialization, urbanization, and land use in China:," EPTD discussion papers 58, International Food Policy Research Institute (IFPRI).
  11. Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
  12. Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
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