Urban Infrastructure Financing in Reform-era China

De, Wang; Zhang, Li; Zhao, Zhang; Zhao, Simon Xiaobin

doi:10.1177/0042098010392079

Cited by 71 publications

(38 citation statements)

References 19 publications

(14 reference statements)

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“…This program is the primary instrument for generating revenue at the municipal level and has been shown to have a critical impact on urban growth. It was developed experimentally in four cities in 1988 (Shenzhen, Guangzhou, Tianjin, and Shanghai) and was then expanded to the rest of the country in 1992 (Wang et al, 2011). The second set of policies are the preferential policies on economic development in China's coastal provinces.…”

Section: Policy Variablesmentioning

confidence: 99%

Geographic determinants of China's urbanization

Christensen

McCord

2016

Regional Science and Urban Economics

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This study exploits a unique set of satellite and other spatially explicit data to examine the role of three exogenous geographic factors in shaping and constraining urbanization: biophysical land suitability for agriculture, distance to major ports and terrain slope. The setting is China in the 1990's, the most expansive process of urban growth in history. Our empirical results suggest that these geographical factors explain nearly half of the variation in urbanization levels. However, controlling for long-run levels, we nd a weakly negative relationship between agricultural land suitability and urban expansion from 1990-2000, which is consistent with the theoretical expectations that rising opportunity costs a ect the development of fertile lands. We examine heterogeneity in the e ects of geography using interactions with province xed e ects and, even more exibly, with a localized regression technique (geographically weighted regression). Our results indicate that agricultural land suitability has opposing e ects in di erent regions, for example leading to increased urban expansion in the Pearl River Delta and restricting urban expansion along the northern coast. These results should caution scholars against assuming homogeneous e ects of physical geography across regions when doing empirical analysis of urban dynamics.

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Section: Policy Variablesmentioning

confidence: 99%

Geographic determinants of China's urbanization

Christensen

McCord

2016

Regional Science and Urban Economics

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“…While local governments themselves were not allowed to borrow money directly, they used their SOEs to do so, while other resources provided necessary means to shoulder increasing infrastructure investments. These resources included SOE revenues, user charges and fees, and land leasing deals (Wang et al, 2011). With regard to land leasing, provincial and local governments have greatly benefited from land belonging exclusively to the state, generating a revenue source (land value capture) for infrastructure development and collateral in debt-raising for infrastructure project companies.…”

Section: Lessons Learned From Chinamentioning

confidence: 99%

Infrastructure provision in developing Asia's giants: A comparative perspective on China, India, and Indonesia

Abiad

Teipelke

2017

J Infrastruct Policy Dev

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This paper provides a comparative perspective on infrastructure provision in developing Asia's three largest countries: China, India, and Indonesia. It discusses their achievements and shortfalls in providing network infrastructure (energy, transport, water, and telecommunications) over the past two decades. It documents how three quite distinct development paths-and very different levels of national saving and investment-were manifested in different trajectories of infrastructure provision. The paper then describes the institutional, economic, and policy factors that enabled or hindered progress in providing infrastructure. Here, contrasting levels of centralization of planning played a key role, as did countries' differing abilities to mobilize infrastructure-related revenue streams such as user charges and land value capture. The paper then assesses future challenges for the three countries in providing infrastructure in a more integrated and sustainable way, and links these challenges with the global development agenda to which the three countries have committed. The concluding recommendations hope to provide a platform for further policy and research dialogue.

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“…Furthermore, the urbanization rate has increased from 17.90% in 1978 to 56.10% in 2015, since the implementation of reforms and the opening-up policy [32]. To satisfy the urban infrastructure demands of more urban people, as well as to promote China's urbanization, Chinese governments across all administrative levels have been constantly increasing their UII and actively exploring urban infrastructure construction mechanisms [33,34]. From 1978 to 2015, China's UII increased from RMB 1.2 billion to RMB 1.62 trillion, with an average annual growth rate (as per the comparable price) of about 25%.…”

Section: Introductionmentioning

confidence: 99%

“…The unbalance of UII has seriously hindered China's urban sustainable development, such as uncoordinated urban systems and serious inequality of basic municipal services between cities or regions [12,13]. In addition, some small and medium-sized cities lacking adequate urban construction funds resort to urban infrastructure construction financing with excessive reliance on government credit, which results in serious local government debts that undermine fiscal sustainability [33].…”

Section: Introductionmentioning

confidence: 99%

“…(2) The analysis of the reasons for China's UII unbalance from the perspectives of administrative powers and financial capacity. The distribution and redistribution of public resources are determined by the administrative levels of the various cities, and cities at higher administrative levels have more available resources for UII, leading to an unbalance between cities of different administrative levels [12,13,33,39,41]. At the same time, compared with those in backward regions, cities in developed regions have more funds for UII, causing unbalance between cities of different regions [34].…”

Section: Introductionmentioning

confidence: 99%

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Inequality, Bi-Polarization and Mobility of Urban Infrastructure Investment in China’s Urban System

Tao

et al. 2017

Sustainability

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Abstract:In periods of rapid urbanization, investment in urban infrastructure should not only meet the increasing demands of all urban people, but also be equally allocated between cities to achieve social equity and sustainable development. This paper aimed to conduct quantitative research on the unbalance of urban infrastructure investment between cities in China. The measurement models for inequality, bi-polarization and the mobility of urban infrastructure investment were constructed by means of the Gini coefficient, bi-polarization index and mobility function from the urban system, and an empirical study was conducted based on panel data from 2006 to 2014. The results show that: (1) The overall inequality of urban infrastructure investment in China's urban system was relatively prominent and showed a "U-shaped" change generally. (2) The inequality between different administrative levels or regional cities only partially accounted for the overall inequality of China's urban system. (3) Inequality and bi-polarization showed inconsistent performance. (4) Mobility played a positive role in reducing the inequality and bi-polarization. Based on the empirical findings and the reality of China's urban infrastructure investment and financing, targeted policy suggestions were proposed in terms of adjusting inequality and bi-polarization, innovating investment and financing mechanisms, and optimizing urban infrastructure investment strategies.

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Urban Infrastructure Financing in Reform-era China

Cited by 71 publications

References 19 publications

Geographic determinants of China's urbanization

Geographic determinants of China's urbanization

Infrastructure provision in developing Asia's giants: A comparative perspective on China, India, and Indonesia

Inequality, Bi-Polarization and Mobility of Urban Infrastructure Investment in China’s Urban System

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