Analysis On The Effect Of Land Resources To China’s Urban Economy

Urban economy is the leading economic power in determining a country’s economic growth and its development. Land resources, which provide products and services, has ciritical effect to urban economy. Modern western mainstream economics classified land resources as the capital, and igored its important influence to modern economy. Although some of domestic and foreign research literatures explore the effect of natural resources, including land resources, to sustainable economic growth, they focus on the effect of land resources on the overall growth of national economy or rural economic development, and igore the effect of land resources on urban economy. As China’s urbanization process entres a stage of accelerated development and the demand of urban lands grows rapidly, the contradiction between the constraints of limited land-supply and the demand on land-exploring and land-utilizing and the contradiction between land demand on urban construction and the protection of agricultural land both become prominent. The effect of land resources on ruban economy therefore should get the attention from scholars both from the point of view of theoretical analysis and empirical research, which is the research motivation and purpose of this paper, and the significance of this article.This thesis includes a total of ten chapters. Chapter1is the introduction. The main body of the thesis is from chapter2to chapter10, which can be divided into two phases. Phases one is the economic analysis which regards urban land and urban economy as the entirety and examines the effect of land resources on urban economy from urbanization process, urban economic growth and sustainable development of the urban economy. Phase two is the institutional analysis which examines the influences of government land supply to urban land utilization and urban land system to urban economic development from the relations among urban land system, urban land utilization and urban economic development. Based on the above two effects analysis, the thesis put forward suggestions on urban land system optimization and innovation from the view of related Marxist theories and from the think of defects of our country’s urban land systemThe main conclusions and viewpoints of the study are as follows:Firstly, according to the analysis on the effect of land resources to urbanization, this thesis believes that China should not unilaterally pursue high urbanization rate, should stress the coordinational development between the urban and the rural, and should choose intensified and intensive urbanization. Empirical studies finds that in certain time, especially in short-run, urban-constructed-land and the level of urbanization exists intensive effect and lag effect, and the studies clarifies that the growth of urban land area and the level of urbanization rate is the key force to promote our country’s economic growth, however, the alteration of urban land area and the level of urbanization has no significant causal relationship with the alteration of our country’s economic growth, which means the expansion of urban land area and the increase of the level of urbanization are not the governing reasons to determine our country’s economic growth. Accordingly, this thesis believes that the incremental supply of urban land and high level urbanization rate are not the essential conditions to achieve long-run economic growth in China.Secondly, according to the analysis on the drag effect of land resources to urban economic growth, this thesis proved that the mode of urban economic growth which depands on incremental supply of urban land would be not sustainable and that the approach of keeping urban economy sustainable growth is a optimizing and upgrading of urban industrial economic structure which depand on the intensive use of urban land and the increasing of capital’s and technology’s inputs on unit urban land. The empirical studies based on panel data find that the urban land has both posstive and negative drag effect on urban economic growih, in which negative drag effect of the urban land on urban economic growth is explained from economic view.Thirdly, according to the analysis on the effect of land resources to urban economic sustainable development through a dynamic views, this thesis not only proves from theory analysis that the technological progress is a prerequisite to achieve urban sustainable economic growth but clarifies the mutual influence and constraint relations within capital, land and technology base on the premise of urban economic sustainable growth. Meanwhile, this thesis from empirical perspective illustrates the performance difference of the effect of urban land to urban economy in quantity and quality’s relation and the importances of urban economic steady growth and urban industrial structure optimization and adjustment on achieving effective and intensive use of urban land base on the unity of opposites relationships between urban land utilization and urban economic development.Fourthly, based on the analysis from theoretical and empirical perspective on the effect of land supply by government to China’s urban land use, the thesis clarifies it is the inherent incentives for urban land over-supply that local government pursuit of the city’s economic development and its own local interests, and proposes it is key to curb the urban land over-supply and excessive expansion of urban construction land that to change urban land’s current revenue allcation mechanism.Fifthly, through analying the influence of urban land system to the performance of the urban economic development, with regarding a micro-economic’s urban land investment behavior as the study object, the thesis clarifies the effect of the stability and the restrictions to land free transaction of the urban land system to a micro-economic’s urban land investment behavior and in turn to the performance of the urban economic development, and accoringly demonstrates the needs and selected direction to potimizing current urban land system.Sixthly, through investigating the optimizing of China’s urban land system with Marxist theory perspective, the thesis through learning from Marxism land-ownership theory, discusses the need to contract urban land development rights and brings forward to divide the benefits of urban land development rights as absolute returns and differential returns; proposes the method to establish and calculate the price of urban land use rights based on the Marxism land-capitalization theory; poses the specific mechanism to allocate the urban land benefits among central government, local government and urban land users; and put forward to a new mechanism, adapted to district economy, of trans-regional and cross-sectoral supervision and coordination guided by the Marxist geographical lalor division theories. Lastly, through using contradiction methods of dialectical of materialism such as different problems analysing in different ways, internal causes and external causes, with inspecting the realistic shortages of China’s urban land system, and meanwhile, arounding four problems such as property rights system design, institutional arrangements, urban land supply-and-demand management and urban land market-oriented reforms concerning adjustment and optimization of China’s urban land system, the thesis bring forward that these are necessary to explicit urban land property boundary of local government and improve the property right system of urban land through refining property right; to construct urban land hierarchical authorization management in accordance with incentive compatibility constraint under the principal-agent relationship between central and local government; to build up urban land demand management systerm which regard urban land effective demand as the core; and to change the form of local government participating in the urban land market and set up a reasonable allcation mechanism of urban land revenue between central and local gonvernment for solving problems such as the urban land resources irrational allocation, inefficient allocation of land resources because of the system’s non-equalibrium in urban land market-oriented reforms beween central government and local government, and the irrational urban land use patterns and structures.There are three innovations as follows in this paper:First, through investigating the effect of land resources to urbanization within the dynamic evolution of the urban economy, the thesis comprehensively explains, from qualitative and quantitative analysis point of view, how land resources influence urbanization development and the interactive affect relations between urban construction land, urbanization’s level and urban economic growth during the stage of accelerated urbanization in China. This article verifies both increment of urban construction land and improvement of urbanization level are important force to promote China’s economic growth and meanwhile finds that changes of urban construction land and urbanization level have no significant causal relationship with changes of economic growth. Therefore, this article gives a assertion that both incremental supply of urban land and high urbanization rate are not the essential conditions for achieving long-run and stable economic growth in China. Second, with considering urban land and economy as the entirety and using neoclassical growth model and dynamic optimization methods, this article theoritically proves from dynamic views that it is unsustainable to urban economic growth to depand on incremental supply of urban land and expounds interactive and internal constraint relations among capital, land resources and technology. Meanwhile, this article finds and explains, from static views, the negative drag effect of urban land to urban economic growth, and clarify action and reaction unity of opposites relations between urban land utilization and urban economic growth.At last, according to the impact analysis on urban land supply to its land utilization and urban land system design to its economic development, and from Marxist theory perspective and consideration of current urban land system’s shortage, this article comprehensively illustrate such suggestions to optimizing and innovating China’s urban land system as dividing the benefits of urban land development rights as absolute returns and differential returns, constructing mechanism adapted to district economy to urban land management etc..