Jiang Xing-san

Bio: Jiang Xing-san is an academic researcher from Development Research Center of the State Council. The author has contributed to research in topics: Land economy & Revenue. The author has an hindex of 1, co-authored 1 publications receiving 21 citations.

Financial Risks of Land Financing by Local Governments——Case Study of a Developed Area in East China

Abstract: The purpose of the paper is to study risks of running land by loca l governments and to propose countermeasures. Method of case study was employed. T he results show land financing has become an important source of local revenue a nd funds for urbanization. The urbanization since last 90s features governmentdominated urban expansion. The industrial taxation by urban expansion within loc al financial budget and land remise income beyond financial budget have become r eal "land revenue". The principal of land reserve by the government is to purs ue the maximum land benefit and the land financing by mortgage. The new round of urban expansion is supported by funds of bank while the loan is driven by land.

Fiscal decentralization, political centralization, and land urbanization in China

Abstract: This study investigates the driving forces of land urbanization in China. Drawing upon insights from the institutional perspective, this study argues that fiscal decentralization tightens local budget constraints, stimulating local governments to urbanize land to relieve fiscal distress. Political centralization triggers interregional competition among government officials for better economic performance, inspiring local governments to employ land development to mobilize more capital investment for growth. Based on official land-use change data from 2002 to 2008 for prefectural cities, and the application of spatial econometric models, this study presents empirical evidence to support these theoretical arguments. Results imply that fiscal and political incentives derived from land development drive China’s land urbanization process. This study enriches the urbanization literature by providing an institutional understanding of rapid land urbanization in a transitional economy.

Environment-biased technological progress and industrial land-use efficiency in China’s new normal

Abstract: The slow growth of the Chinese economy has led to a reduced number of environmental regulations. This study aims to establish whether China’s “new normal” economy can stimulate environment-biased technological progress to improve industrial land-use efficiency. First, we set up a two-sector theoretical model where in the new normal is treated as an exogenous variable to analyze the combined effects of technological progress, industrial land-use efficiency, and environmental regulations. Then, we establish a multi-index and multi-indicator constitutive equation, in which environment-biased technological progress is taken as an intermediate variable. The results show that the effects of weak environmental regulations on environment-biased technological progress are not significant and that China’s new normal economy can stimulate the progress of clean technology, thereby improving industrial land-use efficiency. Finally, foreign direct investment restricts the improvement of industrial land-use efficiency.

The Increasing Financialization of China’s Urbanization

Abstract: This paper provides a heuristic framework to address issues about China’s ongoing urbanization in relation to the role of land and built environment as triggers for economic growth and to the increasing financialization of urban production. While a dominant field of literature highlights the interrelation between land and capital within a specific institutional setting between Central and local governments, it argues to include other key linkages between infrastructures, property development and finance to understand China’s recent exponential urban growth. It first places the current consequent local governments’ debt into perspective along with the evolution of financial circuits for urban infrastructures resulting from Central Government policy and regulation changes. Next, and in line with the real estate literature that highlights the key role of demand, it develops an original understanding of the financialization of urban production from the perspective of China’s property industry. Besides the role of homeownership policies since 1998 which boosted urban production based on use value, various ways of the transformation of property into financial assets have occurred. Chinese households as the main investors have not only been able to directly invest in housing and in non-housing by purchasing flats or commercial property but indirectly by increasing investments in special purpose vehicles such as trust-bank and funds finance and new kinds of investment platforms. In both cases, Central Government macropolicies, both stimulating and restricting from 2008–2016, have gone in hand with increasing financialization processes for local governments’ debt, urban infrastructure financing and real estate.