Study On The Effects Evaluation And Transformation Of Land Finance In Liaoning Province

"Land finance" is the inevitable product under the tax reform, the increased fiscalrevenue of local government deficits, financial shortage. It has brought many positiveeffects to some extent, such as urban construction has accumulated a lot of money, whichgreatly promoted the local economic growth and speed up the pace of urbanization.However, because of land finance also brings huge benefits so that makes the localgovernment more and more seriously dependence on land. Negative effects of landfinance is increasingly highlighted as the shortage of land, for example, disrupt thenormative development of the real estate market, a large number of land requisitiondamaged the interests of farmers, excessive pursuit of interests and ignore the landresources itself, leading to low resource utilization. These negative effects have beenmore than its positive effects; Land finance has been decreasing trend of growth. So, nowwe need to reform the current situation that excessive dependence on land finance. In thecase of Liaoning Province, for example, through the collection of property tax totransform property type of land finance to the tax type of land finance and proposedcorresponding policy suggestions.The main contents of this study are as follows:First, On the basis of narrow and broad definition of the concept of land finance, thesize and causes of land finance Liaoning Province were described,Secondly, Cobb- Douglas production function, least squares method, Grangercausality test method were analyzed for both positive and negative effects of land finance,Analysts pointed out that the negative effects of land finance is an important cause forunsustainable of land finance, on the basis of negative growth trend and unsustainabilityof land finance, propose the necessity of Land Finance Transformation. In the cases ofinternational experience combined with the actual situation, demonstrate the property taxis the best choice for local governments to increase sources of revenue, and thus putforward the land finance transformation path- a property tax, then analysis the feasibilityand effect of the path. Through the analysis of the effect of the property tax, it can beseen that the property tax play a good positive role for local government financialstructure and income, real estate market and urbanization.Finally, the paper put forward the relevant policy suggestions of land financetransformation, such as the transformation of government concept, the establishment ofland finance restructuring support mechanisms, such as improve the land requisitioncompensation and transfer mechanism, land finance system and land income distributionsystem,etc.