Dissertation > Economic > Fiscal, monetary > Finance, the state's financial > China's financial

Study of the Relationship between Land Finance and Economic Growth

Author ChengXiaoXu
Tutor WuYanMin
School Tianjin University of Finance and Economics
Course Finance
Keywords Land finance Land-transferring fees Land tax Economic growth
CLC F812
Type Master's thesis
Year 2013
Downloads 13
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In recent years, along with the rapid development of economy in our country, the quality of economic development and the deep reason behind the economic growth attract the public attention. In this context, land financial problems increasingly become the focus attention of domestic and foreign scholars.Along with the expanding of city scale in recent years, land-transferring fees, a local government extra-budgetary income, is a significant proportion of the local fiscal revenue. And this phenomenon depends on the demand of the growing of local government spending and the local economic growth driving. At the same time, along with the prosperity and development of real estate industry, the land tax revenue which related to land such as the land appreciation tax and the deed tax is also growing. Through data analysis, it is also proved that the land finance is one of the important factors affecting economic growth.On the one hand, the local governments transfer a lot of new urban land to the developers or users in the way of payment, in order to gain vast amounts of land-transferring fees and land tax revenue, and then invest them in urban infrastructure and other projects associated with economic development. As an important factor of production, the land resources provide financial support for the urban constructions, make up for the local government fiscal shortfall caused by the imbalance of financial powers and responsibilities, make a great contribution to the development of urban economy.On the other hand, due to the limited land resources in our country, it could not maintain local fiscal expenditure by the unlimited land transfer, so the way of economic growth by land finance is not sustainable. As the land financial ratio continues to increase, the problems in the urban development appear progressively. The problems such as the shrinkage of agricultural acreage, serious waste of land resources,the widening gap between town and country and high housing prices arise. They not only cause huge pressure to national macroeconomic regulation and control, but more affect people’s live and the permanent stability of the country.Therefore, on the basis of the positive effects of land finance to the economic growth, through reference of foreign related land system, we should timely adjust the direction of the land system in the development of our country,reform the current land expropriation system and land direct management system, deepen reformation of financial and taxation system, establish a reasonable performance evaluation system, to adapt to the requirement of market economy development and lay a foundation for the sustainable and steady development of economy.

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