The Impact Of Land Finance On The Income Gap Between Urban And Rural Residents

The land finance is derived from the tax-sharing reform and has become the “secondary finance” of local governments and even the main source of local fiscal revenue.Although land finance is of great significance to promoting regional economic development,it also causes local governments to rely too much on land-sending income,which has created many problems,which in turn affects national income distribution.A number of studies have pointed out that local governments rely on all the land to become a monopoly of land supply,and through the "sales and auctions" and other forms of land sales indirectly triggered the rise in land prices and housing prices,this market expectation has brought quite to local governments.It is a considerable extra-budgetary fiscal revenue,and it also drives the prosperity of the real estate market,but it also causes local governments to unconsciously fall into the mud of relying on operating land to quickly obtain fiscal revenue and rely on the real estate industry to develop the local economy in a one-sided manner.Seriously affect the quality of life of the people.Therefore,exploring the impact of land finance on the income gap between urban and rural residents has important practical significance for local governments in China to recognize the current land financial malpractice and start local land financial transformation.This paper has carried out research from two aspects of theory and evidence.First of all,in the theoretical research part,this paper decomposes land finance into two parts: production factors and land elements such as talents and capital.Using economic theory such as steady-state equilibrium,it is analyzed that factor agglomeration will cause agglomeration effects and radiation effects between regions.The agglomeration effect is the endogenous dynamic factor of regional economic growth,and the radiation effect is the exogenous influencing factor.The smaller the relative distance,the more obvious the antagonistic effect of radiation effect on the agglomeration effect.The larger the relative distance,the less the radiation effect will be enough to offset the agglomeration effect.Impact.Further,according to the dual economic theory,under the “top-down” scale competition environment,regional economic growth will further strengthen the behavior of local governments,realize the closed loop from regional economic growth to factor agglomeration,and appear excessive land finance.On the contrary,it has hindered regional economic growth,which has caused the impact of the income gap between urban and rural residents to deteriorate first,followed by short-term stability,and then gradually narrowed the trend of “reverse U”.Secondly,in the empirical analysis part,this paper studies the impact of land finance on the income gap between urban and rural residents based on the national economic statistics of more than 300 prefecture-level cities and above in 2007-2016.Through the test and robustness analysis of the panel data regression model,it is concluded that the land finance has an “inverted U” effect on the income gap between urban and rural residents.At present,the average size of land finance is near the “inflection point”.In view of the existing research on the "inverted U" effect of economic growth on the income gap between urban and rural residents,the lack of explanatory power in the empirical process of this paper,this paper considers the spatial correlation and finds that the impact of economic growth on the income gap between urban and rural residents is "inverted U" type.The trend of change is reflected,and the inter-regional economic interaction has a significant impact on China's economic growth.Therefore,this paper believes that the inter-regional economic interaction is largely due to land finance,and there is a strong space for the income gap between urban and rural residents.The relevance is ultimately the land finance of local governments.Finally,the paper proposes the following three policy recommendations:(1)transform the traditional pursuit of land finance and avoid diminishing marginal utility;(2)avoid vicious competition among local governments and strengthen regional cooperation;(3)actively respond to rural revitalization strategies and improve Agricultural production and operation level.