A Study On Land Budgetary Management In China

William Petty once said: Nature is the mother of wealth and the father of labor.With the deepening and furthering of our country’s reform and opening-up, the wealth ofland continues to emerge, and becomes an important source of funds for economicdevelopment and modernization. At present, China is in a period of social transition, andsocial development is constantly faced with new opportunities and challenges. With theadvance of the process of urbanization, the proportion of land revenue accounted for localfiscal revenue has increased dramatically, but an effective fiscal management model ofland revenue has not been formed yet, which has not only exacerbated the highlydependence on land revenue of local government, but also contributed to the arbitraryallocation of land revenue. Therefore, deeply analysis of the income and expenditurechannels of land revenue, transferring the way of extra-budgetary management to budgetmanagement, and building up a new model of land budgetary management have importanttheoretical and practical significance.The contents mainly included three parts:Chapter1and Chapter2are the basic study part. Chapter1focuses on the studybackground and significance, the study contents and framework, the definition of keyconcepts, the study methods and samples, as well as the anticipated innovation of theselected topic. Chapter2expounds the theoretical perspectives of the land budgetarymanagement theory, and shows a review on the domestic and foreign literatures.Chapter3to Chapter7is the main study part. Chapter3includes a deeplyinvestigation on the history of Chinese land budgetary management, empirical analysis onthe status of land budgetary management in China, a detailed analysis on the generalcharacteristics of Chinese land budgetary management, and the international comparisonbetween US,Germany and China Hong Kong. Chapter4discusses the functions of Chinese land budgetary management, such as the plan adjustment function, the incomedistribution function and the reflection&supervision function. Chapter5involves adetailed analysis of the Non-zero-sum game between the central government and thelocal government, an explanation of the economic analysis of the game on the landrevenue between the central and local government and the solution to Nash bargaininggame, the focusing discussion on the building of the pay-matrix of Chinese land budgetarymanagement, and an empirical test on the land revenue to local economic growth effect.Chapter6focuses on how to build land budgetary management mode, posing on theguiding ideology and principles, the land budgetary management processes, and thepreliminary proposals of reconstructing the framework of the land budgetary management.Chapter7describes the performance evaluation of Chinese land budgetary managementfrom there aspects, such as institution organizations, evaluation methods, workingmechanisms, as well as scientific and meticulous management.Chapter8is the conclusion part. It systematically concludes the study findings in thepaper, and points out the study limitations in the paper and the future research direction.The main conclusions of the paper are:（1）The evolution of Chinese land budgetary management is a multi-game process,and this game is also a kind of interdependence, mutual compromise and cooperativeNon-zero-sum game.(Efforts to impose, budgetary management） is dominant strategyequilibrium of the game. In this state, it can maximize the effectiveness of central andlocal government, and thus achieve a Pareto optimal state.（2）Since2007, the Non-zero-sum game has broaden the central government’sbudget monitoring range, the local land revenue and expenditure has brought into thescope of government funds budget, which resulted to great changes shifting into thesystem from outside the system, into the budget from extra-budgetary.（3）Using the inter-provincial panel data from2001to2009and fixed effects model in the empirical test, it can be found that the greater the proportion of local land revenueaccounted for the regional GDP, the more chances to promote local economicdevelopment. We can also known that higher fix-assets investment amount, the increasingsocial employment population, and moderate inflation can all be benefit to local economicgrowth.（4）On the basis of the existing land budgetary management, the mode of new landbudgetary management separate the land budget into a sub-system. Referring the methodof building the state-owned capital management budget and the social security budget, theland revenue and expenditure are included into the budget management to build acomplete and independent budget system, which can promote the integrity of governmentbudget, enhance the force of constraint and transparency and the better to accept thesupervision of the National People’s Congress and whole society.The improvements and innovations of the study are mainly reflected in:（1）The study is based on the comprehensive use of the theoretical knowledge ofeconomics, management and other multi-disciplinary theoretical knowledge, and thespecial perspective of land budgetary management in China. On this basis, we attempt toestablish a new budget mode and technology system of land budgetary management.（2）The study uses the method of the event study, the regression model, and the setof indicators to evaluate the influencing factors and performance of the land budgetarymanagement, which is the bold use of the method in this field.（3）The study in-depth analyzes the origins, current status and problems of landbudgetary management, boldly proposed to separate land budget into a subsystem;meanwhile, some innovative techniques, management processes and performanceevaluation policies are proposed, which have certain valuable references to the practice ofChina’s land budgetary management in the period of social transition.