Determinants of Land Finance in China: A Study Based on Provincial-level Panel Data
Tapping land values to raise extra-budgetary funds for local coffers has been a prominent fiscal phenomenon in many developing countries. This article, based on a provincial-level panel dataset for the period 1999-2009, examines the factors behind Chinese local governments’ reliance on land finance. Our analysis shows that intergovernmental fiscal arrangements, such as the central-provincial fiscal imbalance, and the lack of adequate revenue capacity of sub-provincial governments, have encouraged local governments to exploit land leasing. There is also evidence suggesting that political factors might have a significant impact on land finance arrangements, but these tentative results need further investigation. This research contributes to the body of literature on intergovernmental fiscal relations, and improves our understanding of the dynamics and complexity of land finance arrangements in China. Policy implications are drawn from this analysis for further reforms of land management and intergovernmental financing in China and other developing countries facing similar challenges. 
 
 
 
利用土地价值为地方政府增加预算外资金在许多发展中国家都是一个突出的财政现象。本文基于1999-2009年的省级面板数据，对中国地方政府依赖土地财政背后的影响因素进行了分析。我们的分析显示政府间财政制度安排，例如中央和省级政府之间的财政不平衡，以及省级以下政府缺乏充足的财政收入来源等问题，刺激了地方政府进行土地出让。也有证据显示，政治因素也可能对土地财政制度安排有显著影响，但是对这些初步结果还需进一步调查。本研究对政府间财政关系的相关文献进行了补充，让我们对中国土地财政制度安排的动态和复杂性有了更深入的理解。 本文讨论了该研究对于中国和其它面临类似挑战的发展中国家将来进行土地管理和政府间财政关系的深化改革的政策涵义。