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A Transitional Institution for the Emerging Land Market in Urban China

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  • Jieming Zhu

    (Department of Real Estate, National University of Singapore, 4 Architecture Drive, Singapore 117566, rstzhujm@nus.edu.sg)

Abstract

Chinese economic reforms since 1978 have been a continuous process of fundamental institutional change. The new institution of ambiguous property rights over state-owned urban land evolves from the socialist people's landownership. This institutional change is driven by the changing economic system and by two new organisations-the local developmental state and danwei -enterprises. The new institution facilitates the formation of an emerging land market. This land market, structured by ambiguous property rights, has accounted for the dynamic urban physical growth in many of China's coastal cities in the 1980s and 1990s. Nevertheless, massive rent dissipation induced by the new institution does not provide market certainty, nor does it offer incentives for optimal development. The cost incurred by the institution is gradually overtaking its benefit. The ambiguous property rights are deemed to be a transitional institution during the development of land markets in urban China.

Suggested Citation

  • Jieming Zhu, 2005. "A Transitional Institution for the Emerging Land Market in Urban China," Urban Studies, Urban Studies Journal Limited, vol. 42(8), pages 1369-1390, July.
    • Handle: RePEc:sae:urbstu:v:42:y:2005:i:8:p:1369-1390
    DOI: 10.1080/00420980500150714
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    2. Yuan, Quan & Zhu, Jiren, 2019. "Logistics sprawl in Chinese metropolises: Evidence from Wuhan," Journal of Transport Geography, Elsevier, vol. 74(C), pages 242-252.
    3. Jiang Xu & Anthony Yeh & Fulong Wu, 2009. "Land Commodification: New Land Development and Politics in China since the Late 1990s," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(4), pages 890-913, December.
    4. Deininger, Klaus & Jin, Songqing, 2009. "Securing property rights in transition: Lessons from implementation of China's rural land contracting law," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 22-38, May.
    5. Man Li & JunJie Wu & Xiangzheng Deng, 2013. "Identifying Drivers of Land Use Change in China: A Spatial Multinomial Logit Model Analysis," Land Economics, University of Wisconsin Press, vol. 89(4), pages 632-654.
    6. Wen Wang & Fangzhi Ye, 2016. "The Political Economy of Land Finance in China," Public Budgeting & Finance, Wiley Blackwell, vol. 36(2), pages 91-110, June.
    7. Shang, Juan & Li, Pengfei & Li, Ling & Chen, Yong, 2018. "The relationship between population growth and capital allocation in urbanization," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 249-256.
    8. Li Tian, 2014. "Property Rights, Land Values and Urban Development," Books, Edward Elgar Publishing, number 15856.
    9. Qingke Yang & Xuejun Duan & Lei Wang, 2017. "Spatial–Temporal Patterns and Driving Factors of Rapid Urban Land Development in Provincial China: A Case Study of Jiangsu," Sustainability, MDPI, vol. 9(12), pages 1-15, December.
    10. Zan Yang & Shuping Wu, 2019. "Land acquisition outcome, developer risk attitude and land development timing," The Journal of Real Estate Finance and Economics, Springer, vol. 59(2), pages 233-271, August.

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