IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v69y2017icp454-460.html
   My bibliography  Save this article

Land-based finance, fiscal autonomy and land supply for affordable housing in urban China: A prefecture-level analysis

Author

Listed:
  • Hu, Fox Z.Y.
  • Qian, Jiwei

Abstract

China’s booming housing market and the resultant skyrocketing housing prices in Chinese cities during the recent decade have led the Chinese government to step up its effort to provide affordable housing for low- and middle-income households. Despite the central government’s renewed policy focus on affordable housing program, the real pace of its development in urban China has been too sluggish to achieve its intended objective. Based on a panel dataset of land supply in Chinese cities at prefectural level and above during the period of 2009–2013, this paper examines the factors influencing urban governments’ commitment to land supply for affordable housing. It identifies an intriguing pattern characterizing the spatial mismatch between cities devoting a greater share of land for affordable housing and hotspot cities with severe housing affordability challenge. Cities with higher degree of dependence on land finance and higher level of fiscal autonomy were found to be less likely to devote land for affordable housing construction. The study suggests that the project of affordable housing provision in urban China cannot be successfully implemented unless local governments’ reliance on urban land-based interests are weakened.

Suggested Citation

  • Hu, Fox Z.Y. & Qian, Jiwei, 2017. "Land-based finance, fiscal autonomy and land supply for affordable housing in urban China: A prefecture-level analysis," Land Use Policy, Elsevier, vol. 69(C), pages 454-460.
    • Handle: RePEc:eee:lauspo:v:69:y:2017:i:c:p:454-460
    DOI: 10.1016/j.landusepol.2017.09.050
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837717309535
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2017.09.050?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ya Wang & Alan Murie, 2011. "The New Affordable and Social Housing Provision System in China: Implications for Comparative Housing Studies," International Journal of Housing Policy, Taylor & Francis Journals, vol. 11(3), pages 237-254.
    2. Hsing, You-tien, 2010. "The Great Urban Transformation: Politics of Land and Property in China," OUP Catalogue, Oxford University Press, number 9780199568048.
    3. Chenggang Xu, 2011. "The Fundamental Institutions of China's Reforms and Development," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 1076-1151, December.
    4. Jie Chen & Zan Yang & Ya Ping Wang, 2014. "The New Chinese Model of Public Housing: A Step Forward or Backward?," Housing Studies, Taylor & Francis Journals, vol. 29(4), pages 534-550, June.
    5. Han, Li & Kung, James Kai-Sing, 2015. "Fiscal incentives and policy choices of local governments: Evidence from China," Journal of Development Economics, Elsevier, vol. 116(C), pages 89-104.
    6. Youqin Huang, 2004. "Housing Markets, Government Behaviors, and Housing Choice: A Case Study of Three Cities in China," Environment and Planning A, , vol. 36(1), pages 45-68, January.
    7. Zhang, Chuanchuan & Jia, Shen & Yang, Rudai, 2016. "Housing affordability and housing vacancy in China: The role of income inequality," Journal of Housing Economics, Elsevier, vol. 33(C), pages 4-14.
    8. Rong, Zhao & Wang, Wenchun & Gong, Qiang, 2016. "Housing price appreciation, investment opportunity, and firm innovation: Evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 34-58.
    9. Wen Wang & Xinye Zheng & Zhirong Zhao, 2012. "Fiscal Reform and Public Education Spending: A Quasi-natural Experiment of Fiscal Decentralization in China," Publius: The Journal of Federalism, CSF Associates Inc., vol. 42(2), pages 334-356, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Junxue Jia & Siying Ding & Yongzheng Liu, 2018. "Decentralization, Incentives, and Tax Enforcement," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1819, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Qiang Fu, 2016. "The persistence of power despite the changing meaning of homeownership: An age-period-cohort analysis of urban housing tenure in China, 1989–2011," Urban Studies, Urban Studies Journal Limited, vol. 53(6), pages 1225-1243, May.
    3. Jia, Junxue & Ding, Siying & Liu, Yongzheng, 2020. "Decentralization, incentives, and local tax enforcement," Journal of Urban Economics, Elsevier, vol. 115(C).
    4. Xiang Cai & Chin-Chang Tsai & Wei-Ning Wu, 2017. "Are They Neck and Neck in the Affordable Housing Policies? A Cross Case Comparison of Three Metropolitan Cities in China," Sustainability, MDPI, vol. 9(4), pages 1-16, April.
    5. Chen, Jie & Nong, Huifu, 2016. "The heterogeneity of market supply effects of public housing provision: Empirical evidence from China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 115-127.
    6. Ding, Haoyuan & Ni, Bei & Xue, Chang & Zhang, Xiaoyu, 2022. "Land holdings and outward foreign direct investment: Evidence from China," Journal of International Money and Finance, Elsevier, vol. 124(C).
    7. Qichun He & Meng Sun, 2018. "Does Fiscal Decentralization Increase the Investment Rate? Evidence from Chinese Panel Data," Annals of Economics and Finance, Society for AEF, vol. 19(1), pages 75-101, May.
    8. Wen, Qiang & Zhang, Teng, 2022. "Economic policy uncertainty and industrial pollution: The role of environmental supervision by local governments," China Economic Review, Elsevier, vol. 71(C).
    9. Chang Liu & Wei Xiong, 2018. "China's Real Estate Market," NBER Working Papers 25297, National Bureau of Economic Research, Inc.
    10. Chunyan He & Ding Li & Qiong Ma & Daichun Yi, 2022. "City Bias: Affordable Housing Accessibility Assessment—Evidence From 153 Prefectural Cities in China," SAGE Open, , vol. 12(4), pages 21582440221, December.
    11. Wang, Yuan & Hui, Eddie Chi-man, 2017. "Are local governments maximizing land revenue? Evidence from China," China Economic Review, Elsevier, vol. 43(C), pages 196-215.
    12. Qi, Minhao & Liu, Yuxin & Hu, Changlong & Yang, Zhijiu, 2024. "The unintended consequence of environmental centralization: Evidence from firm financialization," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    13. Xiang CAI, 2018. "Determinants Of Affordable Housing Allocation: Common Perspectives From Local Officials," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 227-237, July.
    14. Qiang Fu, 2015. "When fiscal recentralisation meets urban reforms: Prefectural land finance and its association with access to housing in urban China," Urban Studies, Urban Studies Journal Limited, vol. 52(10), pages 1791-1809, August.
    15. Junhua Chen & Na Liu, 2022. "The impact of fiscal decentralization on the efficiency in social housing provision: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3404-3418, December.
    16. Pi‐Han Tsai & Chien‐Yu Huang & Tsun‐Feng Chiang, 2020. "Fiscal Expenditure And Industrial Land Price In China: Theory And Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 38(4), pages 593-606, October.
    17. Xi, Tianyang & Yao, Yang & Zhang, Muyang, 2018. "Capability and opportunism: Evidence from city officials in China," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1046-1061.
    18. Hao Xi & Lin Tang & Changchun Feng, 2022. "Research on the Measurement Method of Benchmark Price of Rental Housing," Land, MDPI, vol. 11(5), pages 1-15, May.
    19. Iris Claus & Les Oxley & Jie Chen & Xuehui Han, 2014. "The Evolution Of The Housing Market And Its Socioeconomic Impacts In The Post-Reform People'S Republic Of China: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 652-670, September.
    20. Ruixia Chao & Desheng Xue & Benshuo Wang, 2024. "Evaluating Human Needs: A Study on the Spatial Justice of Medical Facility Services in Social Housing Communities in Guangzhou," Land, MDPI, vol. 13(7), pages 1-22, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:69:y:2017:i:c:p:454-460. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.