Land Revenue And Local Economic Growth

Land Finance in China not long history, it is 90 by the system of land use rights in China gave birth to a new term. Since twenty-one century, the land finance was gradually concerned by people and became a hot topic. As China's economic development and urbanization, the expansion of land during the planned economy system has failed to meet the needs of China's economic development. Free use of the land, leading to serious land resources and low efficiency, has gradually begun to restrict China's economic development. Reform of land use system has reached a critical state. This situation forced the central government during the land use plan for reform. If the situation that local government are dependent on the land finance excessively can't be changed. it is bound to trigger a new "enclosure" boom and make the urban land sprawl rapidly, which constrains the sustainable development of urban economy. Therefore, how to reduce the dependency on the land finance and how to ensure local governments have sufficient fiscal revenues for the urban construction are serious problems that our country face at the present stage. Through the study on the transition of urban land finance, it can provide the effective measures to solve the problem, and has an important practical significance. This paper includes the main contents as follows:The first part describe on the research background and significance of study, domestic and foreign research situation, the main contents and methods of study and innovations that may exist in paper and inadequacies.The second part briefly introduces the theoretical basis of land finance, including the absolute rent, differential land rent, land rent and the balance of rent bidding.The third part describe the land finance development and evaluate the positive effects that land finance caused by using Cobb-Douglas production function and curve fitting methods.The fourth part of the land by describing the financial problems caused by consumption of land, increasing land-extensive land use and land caused by the phenomenon of unfairness, to analyze the negative effects of land finance.,The fifth part based on profound reason analysis caused by land finance, mainly include the reasons for local fiscal gap and monopoly on primary land market by local government, then the paper designs the route how to transform China's land finance mode.First, through observation and study from the international experience, the levy of property tax is undoubtedly the best choice for local governments to increase taxes, and the paper proposes the basic line of property tax reform in China, it draws two conclusions from simulation analysis of China's property tax levy:1.the proportion of property tax levy to tax revenue is higher than other taxes, so it can become the main local tax;2.the property tax revenue can bring the local government sustainable and stable fiscal revenue, preventing the local fiscal gap enlargement.Second, the existing mode of land asset management can't change the situation that the local governments control the monopoly power on primary land marker. The management mode not only caused severe loss of land assets, but also makes the residents' welfare level declining the corporatization of land asset management is inevitable trend of the transformation on land asset management mode. The corporatization mode can prevent local governments form operating the profitable land, and control of the loss of state-owned land assets effectively. Through the market mechanism, the land assets can realize the market value, which causes the local fiscal revenue increase.