Study On The Resolution Mechanism Of Funds Shortage Of Urban Land Reserve

The urban land reserve is a complicate work with capital-intensive input.The supports of the huge amount of funds are neccessary in each link of the landreserve. The shortage of funds has being hindering the sustainable development ofland reserver system, and this kind of phenomenon has being attracting the concernsfrom the society. The history of land reserve system in China is so short thatthe research on this issue is still in the exploratory stage. In spite of many solutionsproposed, this problem has not been solved fundamentlly.From the perspectives of fund supply and fund demand, the paper attempted toexplore the solutions to the fund shortage to promote the sustainable development ofland reserve system. The methods of empirical analysis and normative analysis wereemployed. The paper constructed a trinity settlement mechanism to the issue from theaspects of land reserve system, land reserve management and land reserve financing,adopting a combination of theories of land property right, institutional change,inventory theory, and so on. The main contents and conclusions are as follows:1. At system level. The perfection of land reserve system is a basic necessary forthe financing. The paper studied the legislation, objective and institutional nature ofland reserve from the perspective of financing. The empirical study of the legislationof the land reserve system was done in this paper, and the recommendations wereproposed that land reserve system should be included in the land administration law.On the basis of institutional change theory, the land reserve goals were divided intoshort, medium and long-term through dynamic investigation on the land reservetargets. The paper analyzed mode of operation of the land reserve body in thecorporation form and pointed out that the essence of land reserve body is of institutionlegal person, whether the body is in corporation form or in institutional form.2. At management level. From the point of view of cost control, the paperoptimized the land reserve system, based on the operation procedure of the land purchase, land development at the first level, and land storage. Firstly, the papercleared the contents of purchasing price through defining the connotation of landreserve purchasing price separately from three aspects of land ownership, landvalue-added mechanism and land rent. Secondly, the paper established aprincipal-agent model and analyzed incentive intensity through uniting the landreserve institutions and land development companies in the principal-agenttheory framework. It comes to the conclusion that the land development capitalshould be raised and the part of the land development risk should be born by thedevelopment enterprises to control land development costs. Therefore, the BTmodel should be used in the land development at the first level. Finally, the paper,based on storage theory, established a land reserve quantity model to provide areference to deal with the problem of the modest sacale of the land reserve.3. At financing level. The paper proposed a State-owned Land Income Fundsystem according to the characteristics of land reserve funds demand, the land reservetargets, the nature of the land reserve agency, and financial regulatory requirements inChina.