IDEAS home Printed from https://ideas.repec.org/p/cuf/wpaper/431.html
   My bibliography  Save this paper

Land Taxation in China: Assessment of Prospects for Politically and Economically Sustainable Reform

Author

Listed:
  • Denis Nitikin

    (The World Bank)

  • Chunli Shen

    (University of Maryland)

  • Qian Wang

    (San Francisco State University)

  • Heng-fu Zou

    (Central University of Finance and Economics CEMA
    Wuhan University IAS
    Peking University
    China Development Bank)

Abstract

The emerging land-related unrest in China poses a pressing challenge on the legitimacy of the government. Through the perspective of good governance, the paper examines the role of land in government financing and its economic and political cost, as well as the erosion of government¡¯s credibility and its negative impact on private and collective property rights. The paper emphasizes the recent upward trend in land-related unrest as a consequence of abuses by local governments on land-source revenues. Our special concern rests on the institution of collective property which is slowly emerging from the shadow of the former state property in the course of economic transition. Collective property right could be a useful legal and economic institution but must receive political support to exist alongside with private property.

Suggested Citation

  • Denis Nitikin & Chunli Shen & Qian Wang & Heng-fu Zou, 2011. "Land Taxation in China: Assessment of Prospects for Politically and Economically Sustainable Reform," CEMA Working Papers 431, China Economics and Management Academy, Central University of Finance and Economics.
    • Handle: RePEc:cuf:wpaper:431
    as

    Download full text from publisher

    File URL: http://down.aefweb.net/WorkingPapers/w431.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Qian WANG & Chunli SHEN & Heng-fu ZOU, 2009. "Local Government Tax Effort In China: An Analysis Of Provincial Tax Performance," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 29, pages 203-236.
    2. Talbot Page & Qinghua Zhang, 2003. "Distortionary, Non-Distortionary, and Distributional Properties of Environmental Taxes: Extension of Sandmo's Observation," Working Papers 2003-11, Brown University, Department of Economics.
    3. Deininger, Klaus & Songqing Jin, 2002. "Land rental markets as an alternative to government reallocation? equity and efficiency considerations in the Chinese land tenure system," Policy Research Working Paper Series 2930, The World Bank.
    4. Hongyi Li & Heng-fu Zou, 2002. "Inflation, Growth, and Income Distribution: A Cross-Country Study," Annals of Economics and Finance, Society for AEF, vol. 3(1), pages 85-101, May.
    5. Klaus Deininger, 2003. "Land Policies for Growth and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 15125, December.
    6. Deininger, Klaus & Olinto, Pedro, 2000. "Asset distribution, inequality, and growth," Policy Research Working Paper Series 2375, The World Bank.
    7. Takero Doi & Toshihiro Ihori & Hiroki Kondo, 2002. "Government Deficits, Political Inefficiency, and Fiscal Reconstruction in Japan," Annals of Economics and Finance, Society for AEF, vol. 3(1), pages 169-183, May.
    8. Shouyong Shi, 2001. "Liquidity, Bargaining, and Multiple Equilibria in a Search Monetary Model," Annals of Economics and Finance, Society for AEF, vol. 2(2), pages 325-351, November.
    9. Richard M. Bird & Enid Slack (ed.), 2004. "International Handbook of Land and Property Taxation," Books, Edward Elgar Publishing, number 3304.
    10. Huang,H. & Padilla,A.J., 1995. "Fiscal Policy and the Sub-Optimality of the Walsh Contract for Central Bankers," Papers 9522, Centro de Estudios Monetarios Y Financieros-.
    11. Jan K. Brueckner, 2000. "Fiscal Decentralization in Developing Countries: The Effects of Local Corruption and Tax Evasion," Annals of Economics and Finance, Society for AEF, vol. 1(1), pages 1-18, May.
    12. Gregory C. Chow, 2004. "Economic Reform and Growth in China," Annals of Economics and Finance, Society for AEF, vol. 5(1), pages 127-152, May.
    13. Haizhou Huang & A. Jorge Padilla, 2002. "Fiscal Policy and the Implementation of the Walsh Contract for Central Bankers," Annals of Economics and Finance, Society for AEF, vol. 3(1), pages 27-42, May.
    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. Deininger,Klaus W. & Jin,Songqing & Liu,Shouying & Shao,Ting & Xia,Fang, 2015. "Impact of property rights reform to support China?s rural-urban integration : village-level evidence from the Chengdu national experiment," Policy Research Working Paper Series 7389, The World Bank.
    2. Liu, Yongzheng & Alm, James, 2016. "“Province-Managing-County” fiscal reform, land expansion, and urban growth in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 82-100.
    3. Deininger, Klaus & Jin, Songqing & Liu, Shouying & Xia, Fang, 2015. "Household-level impacts of property rights reform in peri-urban China: Evidence from the Chengdu National Experiment," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205753, Agricultural and Applied Economics Association.
    4. Deininger,Klaus W. & Jin,Songqing & Liu,Shouying & Xia,Fang, 2015. "Impact of property rights reform to support China?s rural-urban integration : household-level evidence from the Chengdu national experiment," Policy Research Working Paper Series 7388, The World Bank.
    5. Julan Du & Hongsheng Fang & Xiangrong Jin, 2013. "Chinese Political and Economic Governance System and the Imbalance between Consumption and Investment," Working Papers 232013, Hong Kong Institute for Monetary Research.
    6. Du, Julan & Fang, Hongsheng & Jin, Xiangrong, 2014. "The “growth-first strategy” and the imbalance between consumption and investment in China," China Economic Review, Elsevier, vol. 31(C), pages 441-458.
    7. Wu, Yan & Heerink, Nico, 2016. "Foreign direct investment, fiscal decentralization and land conflicts in China," China Economic Review, Elsevier, vol. 38(C), pages 92-107.
    8. Junhua Chen & Fei Guo & Hao Wang & Zhifeng Wang & Ying Wu, 2018. "Urban Land Revenue and Sustainable Urbanization in China: Issues and Challenges," Sustainability, MDPI, vol. 10(7), pages 1-12, June.

    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. Denis Nitikin & Chunli Shen & Qian Wang & Heng-fu Zou, 2012. "Water Service Delivery Reform in China: Safeguarding the Interests of the Poor," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 463-487, November.
    2. Heng-fu Zou, 2011. "Foreign Asset Accumulation and Macroeconomic Policies in a Model of Mercantilism," CEMA Working Papers 432, China Economics and Management Academy, Central University of Finance and Economics.
    3. Denis Nitikin & Chunli Shen & Qian Wang & Heng-fu Zou, 2012. "Evaluation of Land Taxation in China," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 489-528, November.
    4. World Bank, 2004. "Colombia : Land Policy in Transition," World Bank Publications - Reports 14351, The World Bank Group.
    5. Huang, Haizhou & Wei, Shang-Jin, 2006. "Monetary policies for developing countries: The role of institutional quality," Journal of International Economics, Elsevier, vol. 70(1), pages 239-252, September.
    6. Hans P. Binswanger-Mkhize & Camille Bourguignon & Rogier van den Brink, 2009. "Agricultural Land Redistribution : Toward Greater Consensus," World Bank Publications - Books, The World Bank Group, number 2653, December.
    7. Raffaella Castagnini & Klaus Deininger & Maria A. Gonzalez, 2004. "Comparing land reform and land markets in colombia: impacts on equity and efficiency," Policy Research Working Paper Series 3258, The World Bank.
    8. Xiaohua Wang & Zhi Luo & Tianyi Wang & Zhuo Huang, 2017. "The Impact of Privatization on TFP: a Quasi-Experiment in China," Annals of Economics and Finance, Society for AEF, vol. 18(1), pages 53-71, May.
    9. Wang, Chan, 2012. "A very preliminary survey on growth and development," MPRA Paper 39037, University Library of Munich, Germany.
    10. Miguel Rocha de Sousa & Vanessa S. Duarte, 2016. "Don´t do Land Reform: a simple theorem," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 6(4), pages 1210-1210.
    11. Mr. Haizhou Huang & Shang-Jin Wei, 2003. "Monetary Policies for Developing Countries: The Role of Corruption," IMF Working Papers 2003/183, International Monetary Fund.
    12. Banco Mundial, 2004. "Colombia: Una Política De Tierras En Transición," Documentos CEDE 2146, Universidad de los Andes, Facultad de Economía, CEDE.
    13. Olabisi S. Obaitor & Marion Stellmes & Tobia Lakes, 2024. "Exploring Spatio-Temporal Pattern of Gentrification Processes in Intracity Slums in the Lagos Megacity," Geographies, MDPI, vol. 4(2), pages 1-22, April.
    14. Wang, Hui & Riedinger, Jeffrey & Jin, Songqing, 2015. "Land documents, tenure security and land rental development: Panel evidence from China," China Economic Review, Elsevier, vol. 36(C), pages 220-235.
    15. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    16. Cao, Chunfang & Li, Xiaoyang & Xia, Changyuan, 2021. "The complicit role of local government authorities in corporate bribery: Evidence from a tax collection reform in China," China Economic Review, Elsevier, vol. 65(C).
    17. Galletta, Sergio, 2017. "Law enforcement, municipal budgets and spillover effects: Evidence from a quasi-experiment in Italy," Journal of Urban Economics, Elsevier, vol. 101(C), pages 90-105.
    18. Ms. Francesca Castellani & Mr. Xavier Debrun, 2001. "Central Bank Independence and the Design of Fiscal Institutions," IMF Working Papers 2001/205, International Monetary Fund.
    19. Grimm, Michael & Klasen, Stephan, 2007. "Geography vs. Institutions at the Village Level," Proceedings of the German Development Economics Conference, Göttingen 2007 9, Verein für Socialpolitik, Research Committee Development Economics.
    20. Nathan Foley-Fisher & Eoin McLaughlin, 2015. "Capitalising on the Irish Land Question:Land Reform and State Banking in Ireland, 1891-1938," Discussion Papers in Environment and Development Economics 2015-03, University of St. Andrews, School of Geography and Sustainable Development.

    More about this item

    Keywords

    land tax; property tax; land-related revenue; land administration;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cuf:wpaper:431. 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: Qiang Gao (email available below). General contact details of provider: https://edirc.repec.org/data/emcufcn.html .

    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.