Understanding the role of central-local government relations in the development of residential land in China : a new institutionalism perspective
Date of Award
5-27-2024
Degree Type
Thesis
Degree Name
Doctor of Policy Studies (DPS)
First Advisor
Dr. HUANG Yaoxuan Virginia
Abstract
Background: In China, central-local government relations have attracted considerable attention in political science and public management. However, the current research findings underscore a presidential gap in understanding how these relations affect social policies. With social and economic development, a country's ability to improve land governance depends heavily on how it manages the central-local relationship in land development. This is particularly urgent in transforming land governance in China’s new era. The central government plays a pivotal role in guiding local governments towards achieving land development goals that align with balanced economic development and farmland preservation through incentives and controls, and local governments seek to maximise their self-interest while operating under the oversight of the central government. Despite the valuable insights of previous studies, the understanding of central-local relations given by this perspective is usually fragmented. Therefore, opening this "black box" is pivotal for presenting a full picture of the residential land development in China.
Aims and objectives: Drawing upon theoretical insights from the new institutionalism perspective, this thesis constructs a framework that integrates and synthesises different perspectives into a unified theoretical framework. This thesis aims to understand how these central-local interactions shape residential land development in China from both a government perspective (i.e., local government's land supply behaviour) and a micro-firm perspective (i.e., micro firms' land auction outcomes).
Methods: Based on panel data covering 284 prefectural-level cities from 2007 to 2023, this thesis uses a two-way fixed effects model to empirically identify and compare different dimensions of central-local relations (fiscal, administrative and personnel) on local government’s land supply and subsequent impact on land auction outcomes by micro firms.
Findings: Empirical results reveal that the central-local fiscal relations (measured by fiscal decentralisation) have positive and significant effects on local governments’ land supply but negative effects on land areas acquired by real estate firms. In addition, we provide empirical evidence that the central-local administrative relations (measured by the textual similarity between central government reports and local government reports) play a significant and negative role in the local government’s land supply and the magnitude of real estate firms’ land auction outcomes. Ultimately, central-local personnel relations, as reflected in official rotation at the city level, are found to negatively impact both local government land supply decisions and real estate firms' land auction outcomes.
Implication: The study confirms the hypothesis that central-local relations play a critical role in developing residential land in China. This study is not only a unique exploration of a conceptual framework that captures the role of central-local relations on residential land development but also derives practical implications for the future reform of China’s urban land system and institutions. The study also reflects on implications for theory, future research, and policy.
Language
English
Copyright
The copyright of this thesis is owned by its author. Any reproduction, adaptation, distribution or dissemination of this thesis without express authorization is strictly prohibited.
Recommended Citation
Wang, Z. (2024). Understanding the role of central-local government relations in the development of residential land in China: A new institutionalism perspective (doctoral thesis, Lingnan University, Hong Kong). Retrieved from https://commons.ln.edu.hk/otd_tpg/30/
