研究成果

Economic Incentives, Administrative Restrictions, Infrastructure Development and Urban Expansion in China

  • 时间: 2007-06-01 17:33:10
  • 点击率: 5776
作    者: Erik Lichtenberg
发表时间: 2007-06-01
概     要:

The acquisition of new land for urban expansion is controlled by local municipal

officialsnominally subject to administrative restrictions from provincial and central

governmentauthorities. These officials are also influenced by the incentives

created by criteria usedto assess prospects for career advancement, most

notably ability to promote economicgrowth, manage local government finances,

and similar aspects of local economicperformance. Infrastructure investments by

provincial and central government authoritiesalso influence these incentives

indirectly via their influence on potential economicperformance. This paper

undertakes an empirical investigation of the factorsinfluencing urban land

expansion in China, with an emphasis on the roles ofeconomic incentives and

administrative restrictions facing local officials andon the influence of infrastructure

provision. It utilizes econometric models whosespecification builds on a behavioral

model of land requisition decisions made bylocal officials in order to maximize

their prospects of career advancement. Theparameters of these models are

estimated using a unique data set that combinesofficial land use statistics obtained

from China’s Ministry of Land and Resourceswith prefecture-level economic and

demographic data from provincial statisticalyearbooks. The models are estimated

using panel data methods to control forunobserved heterogeneity across prefectures

and years. In contrast to earlierstudies, IV methods are used to control for

endogeneity bias as warranted by formal statistical tests. The estimated

parameters shed light on the structure of land acquisition and investment decision

making, most notably the degree to which those decisions are determined mutually

versus one-sidedly, with one party making decisions to which the opposite party

accedes. They also shed light on “dynamic balance” policy has affected

conversion of rural land to urban uses.

     Finally, they shed light on economic incentives influencing land acquisition and

on the influence of transportation infrastructure on investment decisions and

thus economic growth.

关 键 词: Infrastructure Development; Urban Expansion; Economic Incentives
 
WPS200706.PDF