Dual Land Market and Rapid China’s Urbanization: Problems and Solutions

Huachun Wang, Chunxue Zhao, Maerhaba Xiaokaiti, Yue Zhou, Rui Zhao

Academy of Government, Beijing Normal University, Beijing, China.
Research Institute for Fiscal Science, Ministry of Finance, Beijing, China.

DOI: 10.4236/chnstd.2012.11001                

Abstract

The dual land market has greatly encouraged the economy and urban development and created far-reaching effects on excessive land expropriation and land finance. Using an analytical framework of dual market structure model, this paper investigates the relationship between local land finance and China’s rapid urbanization. Low-cost land expropriation is the main reason why extensive urbanization goes so fast in recent China. Granting farmers the complete land rights, implementing property tax to consolidate local tax bases, unifying the dual land market are helpful to achieve both social equity and land use efficiency in Chinese rapid urbanization process.

Keywords

Dual Land Market; Land Expropriation; Land Finance; Urbanization; China

Conflicts of Interest

The authors declare no conflicts of interest.

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