Analysis Of The Effect And Influencing Factors Of Local Government Land Financial Revenue In China

After the tax-sharing reform in 1994,China's local government's financial resources and powers were not equal,and the fiscal gap continued to expand,local governments urgently needed to expand their sources of income.In addition,the rapid development of China's real estate industry in recent years has led to the rapid growth of land-related income,which has enabled local governments to increase their financial dependence on land driven by vested interests.Therefore,the land fiscal revenue has become an important source of local government fiscal revenue,and the"land finance" with Chinese characteristics has emerged.However,in recent years,the local government's land fiscal revenue has become more and more important in the local government's fiscal revenue.In 2010 and 2013,it has even exceeded 80%.Land finance has become the "secondary finance" of local governments.This has led to a series of problems:land finance has led to the short-term behavior of local governments.The local governments only pursue the current economic growth,and this is not conducive to sustainable economic development;housing prices remain high,and the government repeatedly fails to control,the people are miserable;local governments rely too much on land finance,and the financial crisis has increased;the local government's rent-seeking corruption has emerged in an endless stream;the land-related income distribution is unfair;the land resources are continuously occupied,resulting in the reduction of China's cultivated land resources.From the above analysis,we can see that land finance involves many aspects of China's social life.This paper analyses the influencing factors of land finance of local governments in China,which is of great significance to the sustainable development of local economy,alleviating social contradictions and promoting the reform of local tax system.This paper first defines the concept of land finance and land transfer fee,and then sorts out the evolution of land finance system.The evolution of land finance system in China is divided into four stages:the transition period of land free transfer to paid transfer;the period of production of the"transfer"method;the transition period from land transfer to open transaction;the market-based allocation mechanism of land resources is basically formed.Next,it analyses the development of land finance of local governments in China from the scale,structure and regional differences of land revenue.Then it analyzes the effect of land finance of local governments in China.The positive effects include land finance promoting the economic growth of local governments in China.Land finance promotes the urbanization process of local governments in China.Land has eased the financial pressure of local governments in China and made up for the local fiscal gap.The negative effects include the short-term government behavior caused by land finance;the local government relies too much on land finance;the land finance leads to rising housing prices;the land finance will breed corruption;the land finance will lead to unfair distribution;the land finance will lead to the continuous reduction of cultivated land in China.Based on the previous analysis of China's land finance related issues,this paper empirically analyzes the influencing factors of land finance of local governments in China.This paper defines the sum of land transfer income and five kinds of direct taxes(land value-added tax,cultivated land occupation tax,deed tax,real estate tax,urban land use tax)related to land as land fiscal revenue,which is the explanatory variable.Five core explanatory variables are selected as land financial dependence,fiscal self-sufficiency rate,fiscal revenue decentralization,fiscal gap and regional competition index.And local government GDP,financial support population,industrial structure and corruption degree are selected as control variables.Based on the analysis of panel data of 30 provinces in China,the empirical analysis of the factors affecting land finance is carried out.The empirical results show that land fiscal dependence,regional competition index and corruption degree have positive impact on land fiscal revenue;fiscal revenue decentralization has a negative impact on local government land revenue.The GDP of local governments has a positive impact on land finance.The financial support population and industrialization level have a negative impact on the local government land revenue.Urbanization is not an important factor affecting the land revenue.-According to the theoretical and empirical results,it puts forward some suggestions on solving the problems caused by the local government land finance in our country:(1)strengthening the construction of local tax systems in China;(2)strengthening the management of land transfer fees;(3)optimizing the performance appraisal system of government officials in China;(4)reasonably determining the scale and proportion of transfer payments.