IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v99y2020ics0264837719309317.html
   My bibliography  Save this article

A Framework for Understanding the Institutional Arrangements of Urban Village Redevelopment Projects in China

Author

Listed:
  • Yuan, Dinghuan
  • Yau, Yung
  • Bao, Haijun
  • Lin, Wenyi

Abstract

Large-scale urban village redevelopment projects (UVRPs) have been implemented in different ways in China in recent years. This study develops an analytical framework for understanding the heterogeneity of institutional arrangements for UVRPs in China. The analytical framework is established from the perspective of neo-institutional economics. Decision-making and funding sources are used as two dimensions to classify the institutional arrangements into four categories: top-down with government funding (TGF), top-down with villager funding (TVF), bottom-up with villager funding (BVF) and bottom-up with private developer funding (BPDF). The comparative analysis reveals that the bottom-up institutional arrangement is generally more effective in political persuasion than the top-down one, especially when villagers’ committees (VCs) that are responsible for the project implementation are elected freely and fairly. When incorporating the dimension of funding sources into the analysis, a TVF institutional arrangement is likely to incur higher transaction costs than a TGF institutional arrangement, leading to the project having a longer duration. However, when private developers are allowed to participate and to develop UVRPs, the transaction costs will increase due to opportunism and information asymmetry. Policymakers should play an active role in arbitration as it would effectively mitigate the size of transaction costs used to deal with clashes between VCs, ordinary villagers and private developers. Based on information for 394 UVRPs collected from five coastal cities in Zhejiang province, the research findings reveal that a TVF institutional arrangement, which has the highest transaction costs, is still dominant in China. This may be the result of policy continuity and path dependence. Institutional change is contingent on the relative costs, which are the sum of the transformation costs and the transaction costs. Incremental institutional change, rather than radical institutional change, is more likely to occur in China.

Suggested Citation

  • Yuan, Dinghuan & Yau, Yung & Bao, Haijun & Lin, Wenyi, 2020. "A Framework for Understanding the Institutional Arrangements of Urban Village Redevelopment Projects in China," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s0264837719309317
    DOI: 10.1016/j.landusepol.2020.104998
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719309317
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2020.104998?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. Jiang, Yanpeng & Mohabir, Nalini & Ma, Renfeng & Wu, Lichao & Chen, Mingxing, 2020. "Whose village? Stakeholder interests in the urban renewal of Hubei old village in Shenzhen," Land Use Policy, Elsevier, vol. 91(C).
    2. Shahab, Sina & Clinch, J. Peter & O’Neill, Eoin, 2018. "Accounting for transaction costs in planning policy evaluation," Land Use Policy, Elsevier, vol. 70(C), pages 263-272.
    3. Li Tian, 2008. "The Chengzhongcun Land Market in China: Boon or Bane? — A Perspective on Property Rights," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 32(2), pages 282-304, June.
    4. Dinghuan Yuan & Yung Yau & Haijun Bao & Yongshen Liu & Ting Liu, 2019. "Anatomizing the Institutional Arrangements of Urban Village Redevelopment: Case Studies in Guangzhou, China," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    5. Eggertsson, Thráinn, 2013. "Quick guide to New Institutional Economics," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 1-5.
    6. Zhiming Cheng, 2012. "The changing and different patterns of urban redevelopment in China: a study of three inner-city neighborhoods," Community Development, Taylor & Francis Journals, vol. 43(4), pages 430-450, July.
    7. Wang, Xu, 1997. "Mutual empowerment of state and peasantry: Grassroots democracy in rural China," World Development, Elsevier, vol. 25(9), pages 1431-1442, September.
    8. Wang, Boyi & Tian, Li & Yao, Zhihao, 2018. "Institutional uncertainty, fragmented urbanization and spatial lock-in of the peri-urban area of China: A case of industrial land redevelopment in Panyu," Land Use Policy, Elsevier, vol. 72(C), pages 241-249.
    9. Him Chung, 2010. "Building an image of Villages‐in‐the‐City: A Clarification of China's Distinct Urban Spaces," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 34(2), pages 421-437, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. João Carrilho & Jorge Trindade, 2022. "Sustainability in Peri-Urban Informal Settlements: A Review," Sustainability, MDPI, vol. 14(13), pages 1-35, June.
    2. Schatz, Eva-Maria & Bovet, Jana & Lieder, Sebastian & Schroeter-Schlaack, Christoph & Strunz, Sebastian & Marquard, Elisabeth, 2021. "Land take in environmental assessments: Recent advances and persisting challenges in selected EU countries," Land Use Policy, Elsevier, vol. 111(C).
    3. Keying Han & Shitai Bao & Meixuan She & Qixin Pan & Yina Liu & Biao Chen, 2023. "Exploration of Intelligent Building Planning for Urban Renewal," Sustainability, MDPI, vol. 15(5), pages 1-17, March.
    4. Lin Jiang & Yani Lai & Ke Chen & Xiao Tang, 2022. "What Drives Urban Village Redevelopment in China? A Survey of Literature Based on Web of Science Core Collection Database," Land, MDPI, vol. 11(4), pages 1-16, April.
    5. Yue Wu & Yi Zhang & Zexu Han & Siyuan Zhang & Xiangyi Li, 2022. "Examining the Planning Policies of Urban Villages Guided by China’s New-Type Urbanization: A Case Study of Hangzhou City," IJERPH, MDPI, vol. 19(24), pages 1-25, December.
    6. Qing Yang & Yan Song & Yinying Cai, 2020. "Blending Bottom-Up and Top-Down Urban Village Redevelopment Modes: Comparing Multidimensional Welfare Changes of Resettled Households in Wuhan, China," Sustainability, MDPI, vol. 12(18), pages 1-23, September.
    7. Dinghuan Yuan & Jiaxin Li & Qiuxiang Li & Yang Fu, 2024. "Tripartite Evolutionary Game and Policy Simulation: Strategic Governance in the Redevelopment of the Urban Village in Guangzhou," Land, MDPI, vol. 13(11), pages 1-21, November.
    8. Lizheng Zhang & Yumin Ye & Jiejing Wang, 2022. "Influential Factors and Geographical Differences in the Redevelopment Willingness of Urban Villagers: A Case Study of Guangzhou, China," Land, MDPI, vol. 11(2), pages 1-18, February.

    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. Dinghuan Yuan & Yung Yau & Huiying (Cynthia) Hou & Yongshen Liu, 2021. "Factors Influencing the Project Duration of Urban Village Redevelopment in Contemporary China," Land, MDPI, vol. 10(7), pages 1-24, July.
    2. Yani Lai & Lin Jiang & Xiaoxiao Xu, 2021. "Exploring Spatio-Temporal Patterns of Urban Village Redevelopment: The Case of Shenzhen, China," Land, MDPI, vol. 10(9), pages 1-26, September.
    3. Lin Jiang & Yani Lai & Ke Chen & Xiao Tang, 2022. "What Drives Urban Village Redevelopment in China? A Survey of Literature Based on Web of Science Core Collection Database," Land, MDPI, vol. 11(4), pages 1-16, April.
    4. Dinghuan Yuan & Yung Yau & Haijun Bao & Yongshen Liu & Ting Liu, 2019. "Anatomizing the Institutional Arrangements of Urban Village Redevelopment: Case Studies in Guangzhou, China," Sustainability, MDPI, vol. 11(12), pages 1-16, June.
    5. Shenjing He, 2015. "Consuming urban living in ‘villages in the city’: Studentification in Guangzhou, China," Urban Studies, Urban Studies Journal Limited, vol. 52(15), pages 2849-2873, November.
    6. Pan, Wenjian & Du, Juan, 2021. "Towards sustainable urban transition: A critical review of strategies and policies of urban village renewal in Shenzhen, China," Land Use Policy, Elsevier, vol. 111(C).
    7. Shiran Zhang & Jiaping Yang & Changdong Ye & Weixuan Chen & Yixuan Li, 2023. "Sustainable Development of Industrial Renovation: Renovation Paths of Village-Level Industrial Parks in Pearl River Delta," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    8. Siu Wai Wong & Bo-sin Tang & Jinlong Liu & Ming Liang & Winky K.O. Ho, 2021. "From “decentralization of governance†to “governance of decentralization†: Reassessing income inequality in periurban China," Environment and Planning A, , vol. 53(6), pages 1473-1489, September.
    9. van der Kamp, Denise & Lorentzen, Peter & Mattingly, Daniel, 2017. "Racing to the Bottom or to the Top? Decentralization, Revenue Pressures, and Governance Reform in China," World Development, Elsevier, vol. 95(C), pages 164-176.
    10. Yingjie Zhang & Siqi Zheng & Yan Song & Yongguang Zhong, 2016. "The Spillover Effect of Urban Village Removal on Nearby Home Values in Beijing," Growth and Change, Wiley Blackwell, vol. 47(1), pages 9-31, March.
    11. Lin, Dan & Simmons, David, 2017. "Structured inter-network collaboration: Public participation in tourism planning in Southern China," Tourism Management, Elsevier, vol. 63(C), pages 315-328.
    12. Yanpeng Gao & Wenjun Chen, 2021. "Study on the coupling relationship between urban resilience and urbanization quality—A case study of 14 cities of Liaoning Province in China," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-18, January.
    13. Cruz-Daraviña, Paola Andrea & Bocarejo Suescún, Juan Pablo, 2021. "Freight operations in city centers: A land use conflict in urban planning," Land Use Policy, Elsevier, vol. 108(C).
    14. Zhang, Wei & Li, Yuqing & Zheng, Caigui, 2023. "The distribution characteristics and driving mechanism of vacant land in Chengdu, China: A perspective of urban shrinkage and expansion," Land Use Policy, Elsevier, vol. 132(C).
    15. Małgorzata Blaszke & Iwona Foryś & Maciej J. Nowak & Bartosz Mickiewicz, 2022. "Selected Characteristics of Municipalities as Determinants of Enactment in Municipal Spatial Plans for Renewable Energy Sources—The Case of Poland," Energies, MDPI, vol. 15(19), pages 1-16, October.
    16. Fulong Wu, 2009. "Land Development, Inequality and Urban Villages in China," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(4), pages 885-889, December.
    17. Eunice Omolola Olaniyi & Marti Viirmäe, 2016. "The Economic Impact of Environmental Regulations on a Maritime Fuel Production Company," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 8(2).
    18. Valentová, Michaela & Horák, Martin & Dvořáček, Lukáš, 2020. "Why transaction costs do not decrease over time? A case study of energy efficiency programmes in Czechia," Energy Policy, Elsevier, vol. 147(C).
    19. Gaofeng Xu & Jian Liu, 2023. "Institutional Diversity or Isomorphism? Research on the Evolution of Collective-Owned Construction Land Marketization Reform since the 1990s—The Case of Shunde and Wujiang, China," Land, MDPI, vol. 12(4), pages 1-18, March.
    20. Jieming Zhu, 2013. "Governance over Land Development during Rapid Urbanization under Institutional Uncertainty, with Reference to Periurbanization in Guangzhou Metropolitan Region, China," Environment and Planning C, , vol. 31(2), pages 257-275, April.

    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:99:y:2020:i:c:s0264837719309317. 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.