Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
Series Vol. 46 , 01 December 2023
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Access | Article
Analysis of the Factors Influencing the Dependence of Local Governments on Land Finance in China
* Author to whom correspondence should be addressed.
Abstract
With the increasing debt accumulated by local governments, land finance has become an important issue worth paying attention to in the China’s economy. Based on the political economy literature, this paper selects general public budget expenditure, regional GDP, per Capita GDP, urbanization rate of permanent people, and the development of the secondary industry as independent variables and the dependence on land finance of the local government as dependent variable. Panel data from 22 provincial local governments is collected for empirical research. The empirical results indicate that accelerating urbanization, general public budget expenditure have led to local governments obtaining extra-budgetary land fiscal revenue. The growth of regional GDP and the expansion of the secondary industry will bring revenue to the region, which will help reduce the dependence of local governments on land finance. The political economics research on land finance helps to understand the economic behavior of local governments in China and also contributes to understanding the issue of soft budget constraint.
Keywords
land finance, budget, land transfer, government
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
- ISBN (Print)
- 978-1-83558-139-1
- ISBN (Online)
- 978-1-83558-140-7
- Published Date
- 01 December 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/46/20230327
- Copyright
- 01 December 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited