Study Of Land Development & Micro-Governance Models Of Development Areas In Beijing

Development areas have brought rapid economic development in Beijing, since their establishment at the end of 1980s. Led by Beijing Economic-Technological Development Area and Zhongguancun Science Park, Beijing city has formatted a development area cluster with certain size and characteristics.This paper focuses on two core issues of the Micro-Governance Model and the Land Development Model in Beijing development areas, from the microeconomic point of view. In this paper, combinative research methods will be used as empirical analysis with normative analysis, overall research with case analysis, and inductive analysis with deductive analysis. Based on new institutional economics, with public goods and externality theory as the main tool, referring to domestic and abroad development area practical experience, this paper comparatively analyze the characteristics of Micro-Governance Model and land development patterns of two major development areas in Beijing, and obtain major conclusions as following:1. The public-goods characteristics of development area and the externalities of land development lead to "market failure" and low efficiency in resource allocation mechanism. Government can internalize the external costs with tax revenue arrangement, in order to ensure efficient supply of development area as public goods.2. Europe and the United States tend to adopt corporate governance model and mixed-type governance model, and Asian countries tend to use the administrative governance model. China’s development can be divided into Government-enterprise Combination, Government-enterprise Separation, and Corporate Governance Model, according to the degree of intervention between government and enterprises. In accordance with the size of development administration committee, this model can also be divided into two types of horizontal coordination and vertical management. All kinds of models have its own pros and cons, the key lies in the application.3. There are so much difference between Beijing Economic-Technological Development Area and Zhongguancun Science Park, such as the development of history, the functions and positions, geographic locations and governance models: Beijing Economic-Technological Development Area is vertical-management governance model, and Zhongguancun Science Park is horizontal-coordination governance model. The two major development areas need to learn from each other, and find their own path to the evolution of governance models, in accordance with its own characteristics.4. Land development is the core business of development areas. There are two profitable mode of land development in Beijing Economic-Technological Development Area: first, make tax revenue as supplement of land-value, and circle the capital; second, cooperate the level one and level two land development, focusing on the level two land development.5. The characteristic of land development mode in Zhongguancun Science Park is to set enterprises as the mainstay, and make the development and construction based on self-financing. Because of multiple parties of interests and complexity of interest relationship, every party is in a "zero-sum game" embarrassing situation. To resolve the problems in the process of land development in Zhongguancun Science Park, there must be completely change in its pattern of corporate governance approach, with government support, financing channels for enterprises and strategy transition of development enterprises and so on.