The Influence Of Land Finance On The Supply Of Local Public Goods

Since the reform of tax distribution in 1994,the local government's fiscal power and administrative power have not matched,it led an increase in the local government's fiscal revenue and expenditure gap.At that time the fiscal deficit of local governments has become the focus issue,it has forced local governments to seek new sources of extra-budgetary revenue.In 1998 the land transfer fees were shared by the central and local governments,but in 2006 all the land transfer revenue was transferred to local governments.This paper has based on the analysis of the causes of land finance,public goods and their classification,and the literature review of land finance and public goods.This paper has studied the relationship between the supply of public goods and the dependence of land finance by local governments through empirical analysis.Using the panel data of 70 large and medium-sized cities in China from 2007 to 2016 to study their relationship.First of all,this paper has overall discussed the 70 cities land financial dependence relationship with the public goods supply,then "BeiShangGuangShen" and "new first-tier cities" the 19 cities into a class,anther is the rest of the medium-sized cities.The empirical analysis shows that there is a significant negative correlation between the economic public goods and the financial dependence of land in the former category of cities.In other medium-sized cities,the relationship between their is significantly positive.This shows that the relationship between local economic public goods supply and land financial dependence is related to the economic development level of the city.With the improvement of the land use right transfer system,the number of land segments that transfer the land use right by agreement gradually decreases,and more land is transferred by means of "bidding,auction and listing".In the following empirical analysis,the land fiscal revenue is divided into two categories: the agreed transfer revenue and the "bidding,auction and listing" transfer revenue,and the empirical analysis is conducted respectively.The empirical results show that the negotiated transfer income has different impacts on the construction of urban infrastructure in large and medium-sized cities.The supply of economic public goods and the transfer income of "bidding,auction and listing" are significant in 70 large and medium-sized cities in China,and after classification the significance of the relationship between their is different in the cities.The results of empirical tests on the transfer income of public goods in education,medical treatment,culture and sports and the agreed transfer income and the "bidding,auction and listing" transfer income are not significant.In medium-sized cities,both the negotiated transfer income and the "bidding,auction and listing" transfer income have a significant impact on the per capita green space of the city,and the relationship between them is significantly negative,but in large cities,the relationship between their is not significant.