Local Government Intervention, Land Market and Urbanization: Evidence from Prefectural-level Cites in China
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| Title | Local Government Intervention, Land Market and Urbanization: Evidence from Prefectural-level Cites in China
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| Author | Fan Jianyong,Mo Jiawei and Zhang Jipeng |
| Organization | FUDAN University; Nanyang Technological University, Singapore |
| Email | jyfan0393@163.com, jianyongfan@fudan.edu.cn，mojiawei423@hotmail.com |
| Key Words | Land Regulation; Spatial Equilibrium; Dynamic Urban Development |
| Abstract | How to illustrate the critical role that local governments play in the process of China’s fast urbanization and economic development? Based on China’s dual land market institution, this paper investigates local government intervention in the land market which we call it “institutional land regulation”, and modifies the classical spatial equilibrium model to explain China’s urbanization. Our empirical evidence suggests that (1) the behavior of offering industrial land in low price increases the growth of population and wage level, but has no significant impact on growth of housing price. However, the behavior of providing less quantity of residential land increases the growth of housing price but has no significant effect on population and wage level; (2) the growth of housing price in cities with higher level land regulation is faster than that in cities with less land regulation, and there is no significant difference in the growth of population and wage in different cities with different level of land regulation. Our findings help us better understand China’s fast urbanization and economic development. |
| Serial Number | WP695 |
| Time | 2014-09-11 |
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