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Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China

Author

Listed:
  • Mingyu Zhang

    (Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China)

  • Qiuxiao Chen

    (Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China
    School of Engineering, Zhejiang University City College, Hangzhou 310015, China)

  • Kewei Zhang

    (Department of Regional and Urban Planning, Zhejiang University, Hangzhou 310058, China)

  • Dongye Yang

    (Zhejiang Huanneng Environmental Technology Co., Ltd., Hangzhou 310012, China)

Abstract

To promote the harmonious human-land relationships and increased urban-rural interaction, rural collective-owned commercial construction land (RCOCCL) marketization reform in some pilot areas was a new attempt by the Chinese Central Government in 2015. In this areas, a novel interest distribution system was established with the land right adjustment and the corresponding local governments were likely to benefit through taxation and land appreciation adjustment fund. This study proposed the hypothesis that the RCOCCL marketization reform would improve local government revenue, and explored the actual effect based on panel census data of county-level administrative units from 2010 to 2018. We applied the difference-in-difference (DID) method to analyze the causal effect of this reform on fiscal revenue with 29 pilot areas selected as the treatment group and 1602 county-level units as the control group. The empirical results of the optimized DID robustness test models and the Heckman two-step method showed that the RCOCCL marketization reform does not have a significant impact because of lower land circulation efficiency, the transfer of land transaction costs, and the policy implementation deviations. Thus, weakening the administrative intervention of local governments in the RCOCCL marketization is essential to the land market development in China.

Suggested Citation

  • Mingyu Zhang & Qiuxiao Chen & Kewei Zhang & Dongye Yang, 2021. "Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China," Land, MDPI, vol. 10(2), pages 1-20, February.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:2:p:209-:d:502021
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    Cited by:

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    2. Lin Zhou & Walter Timo de Vries, 2022. "Collective Action for the Market-Based Reform of Land Element in China: The Role of Trust," Land, MDPI, vol. 11(6), pages 1-16, June.
    3. Dongshui Xie & Caiquan Bai & Huimin Wang & Qihang Xue, 2022. "The Land System and the Rise and Fall of China’s Rural Industrialization: Based on the Perspective of Institutional Change of Rural Collective Construction Land," Land, MDPI, vol. 11(7), pages 1-22, June.
    4. Duanshuai Shen & Xiaoping Zhou & Shuai Xie & Xiao Lv & Wenlong Peng & Yanan Wang & Baiyuan Wang, 2024. "Paths and Mechanisms of Rural Transformation Promoted by Rural Collectively Owned Commercial Construction Land Marketization in China," Land, MDPI, vol. 13(4), pages 1-23, March.
    5. Jiali Liu & Hengwei Wang, 2022. "What Is Farmers’ Level of Satisfaction under China’s Policy of Collective-Owned Commercial Construction Land Marketisation?," Land, MDPI, vol. 11(8), pages 1-20, August.
    6. Shenjie Yang & Lanjiao Wen, 2023. "Regional Heterogeneity in China’s Rural Collectively Owned Commercialized Land Market: An Empirical Analysis from 2015–2020," Land, MDPI, vol. 12(2), pages 1-15, February.
    7. Zhang, Yihao & Liu, Yong & Yang, Qiaoran & Yue, Wenze, 2024. "Assessing performance and disparities in China’s land finance transition: Insights from neo-liberalism and neo-Marxism," Land Use Policy, Elsevier, vol. 146(C).
    8. Zou, Yucheng & Yan, Lei & Zhang, Yanwei, 2023. "Game analysis of incremental income allocation in the marketization of rural collectively-owned commercial construction land under fairness preference," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 1-14.
    9. Yubo Wang & Yuyu Xue & Jianchao Xi, 2022. "Inter-Provincial Differences in Potential Obstacles to Land Transfer Income to Support Rural Revitalization in China," Land, MDPI, vol. 11(4), pages 1-18, March.
    10. Pengrui Wang & Chen Zeng & Yan Song & Long Guo & Wenping Liu & Wenting Zhang, 2021. "The Spatial Effect of Administrative Division on Land-Use Intensity," Land, MDPI, vol. 10(5), pages 1-18, May.
    11. Lei Yan & Xubin Lei & Kairong Hong & Hui Li & Mengyuan Chen, 2022. "Improving Farmer Willingness to Participate in the Transfer of Land Rights in Rural China: A Preference-Based Income Distribution Scheme," Land, MDPI, vol. 11(3), pages 1-22, March.

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