Impact Of Urbanization On Local Government's Dependece On Land-based Finance

After the tax reform,financial revenue of local government has been reduced,and fiscal expenditure has been expanded.However,Growing demands for urban land provide the opportunity for local governments to obtain huge revenue.In recent years,with the rapid increase of the urbanization in china,the local government dependence on land finance is becoming increasingly serious,planted a huge risk in the development of China's economy and society,which shows that research on the process of urbanization and dependence on land finance is prerequisite.This paper based on the research conclusions both at home and abroad,and has studied the definition,causes and effects of the land finance.The urbanization is divided into dimensions: urbanization level and urbanization pattern.The impact mechanism of the level and patterns of urbanization on local government's land financial dependence were analyzed,and detailed theoretical analyses were carried out.In the aspect of urbanization patterns,urbanization patterns are divided by the mainstream and non-mainstream and detailed case studies proves that the mainstream pattern of urbanization deepens the local government's dependence on land finance,non-mainstream urbanization pattern could reduce the local government's dependence on land finance.In the aspect of urbanization level,this paper use panel data of the national capital city from2000 to 2013 proved that,at the present,urbanization deepen the local government's dependence on land-based finance.At last,some specific proposals are offered for the development of China's urbanization and a reference for the management of local government's dependence on land finance in the urbanization process is provided.The main conclusions are as follows: Firstly,the mainstream urbanization pattern are fundamental models in major cities and the non-mainstream urbanization pattern mainly develop in town as a case,and at the present,the mainstream urbanization is still dominant,non-mainstream urbanization is a complement of the mainstream.Secondly,the level of urbanization gradually increased from 2000 to 2013,while the land financial dependence increased at the first and then decreased,but the level of urbanization growth and land financial dependence is substantially simultaneous,which indicates that the urbanization is obviously related to the dependence on land finance.Thirdly,from the view of empirical test,currently urbanization could cause the rise of local government's land financial dependence.Last but not the least,compared with provincial Panel data test,the impact of the urbanization on the local government's dependence on land-based finance in the capital cities is stronger than the provinces,which indicates that the control of the dependence on land finance should be focused on the capital cities.