scholarly journals Does the Land Price Subsidy Still Exist against the Background of Market Reform of Industrial Land?

Land ◽  
2021 ◽  
Vol 10 (9) ◽  
pp. 963
Author(s):  
Lin Zhang ◽  
Yiting Zhao ◽  
Yuan Liu ◽  
Jinfang Qian
Keyword(s):  
Local Governments ◽  
Market Reform ◽  
Purchasing Decisions ◽  
Strategic Choices ◽  
Land Price ◽  
Industrial Land ◽  
Land Transfer ◽  
Price Subsidy ◽  
Transfer Strategies ◽  
Medium Enterprises

In 2007, China started the market reform of industrial land, with the aim of establishing a more effective industrial land market and promoting the effective allocation of land. For this study, we want to explore what strategic choices local governments and enterprises will make under the background of market-oriented reform, and whether there are still some implicit land price subsidies. In this context, based on matching micro land transfer data (2007–2013), we examined the policy effect in the seven years since the reform. Then, we further analyzed the land transfer strategies of local governments and the differences they made to enterprises’ land purchasing decisions against the background of the reform. The following were found: ① With the deepening of market reform, the effect has gradually become clear. The proportion of industrial land transferred through market modes increases year by year. Furthermore, due to marketization, the price of industrial land has increased significantly, and land purchases among enterprises have become more competitive. ② Against the background of the reform, local governments tend to adopt listing as an alternative to negotiation, so as to attract investment from preferred enterprises. ③ Local governments tend to give state-owned and large or medium enterprises more subsidies by way of listing, which reduces the land purchase price for these enterprises. Based on the results, the market-oriented reform of land should be adhered to, and the selection mechanism of tender, auction, and listing transfer methods should be further standardized and refined. Besides, a variety of ways to meet the needs of enterprises for land use (such as lease first and then transfer) should be proposed to compensate for the existing insufficiency.

scholarly journals Can Market Reforms Curb the Expansion of Industrial Land?—Based on the Panel Data Analysis of Five National-Level Urban Agglomerations

2021 ◽  
Vol 13 (8) ◽  
pp. 4472
Author(s):  
Wenfang Pu ◽  
Anlu Zhang
Keyword(s):  
Economic Development ◽  
Panel Data ◽  
Local Governments ◽  
National Level ◽  
Market Reform ◽  
Land Market ◽  
Chinese Government ◽  
Industrial Land ◽  
Urban Agglomerations ◽  
Tax Sharing

As China entered marketization in the late 1980s, it soon established a market economy system and implemented tax-sharing reforms. Driven by the marketization, local governments have rapidly developed the economy under the pressure of fiscal competition caused by the reform of the tax-sharing system. Industrial land is an important factor of local economic development, and it enables local governments to invest heavily in the industrial sector to promote economic development, leading to urban expansion. In order to shed light on the relationship between the market reforms implemented by the Chinese government and the expansion of urban industrial land, this paper used the data of 77 prefecture-level cities in China’s five national-level urban agglomerations as research samples from 2007 to 2018. We first constructed the marketization rate of industrial land (MIL) and used the panel data model to examine whether China′s market reform will curb the expansion of industrial land. The results showed that: (1) land market reform can restrain the scale of industrial land expansion, and the impact is different in different urban agglomerations; (2) under the effect of marketization, foreign direct investment (FDI) has restrained the expansion of industrial land to a certain extent. The amount of industrial investment (AII), the ratio of secondary industry to GDP structure (RSG), and the number of industrial enterprises (NIE) will aggravate the expansion of industrial land. We suggest that the Chinese government should deepen the reform of land marketization and develop a differentiated land market mechanism. It is also necessary for local governments to develop stock land, improve the efficiency of industrial land use, increase the investment in advanced technology, and improve the intensive utilization of industrial land. The research provides a reference for other countries in the world that are developing in a transitional period to restrain unlimited land expansion and save land resources in the process of economic development.

scholarly journals Exploring the Diverse Expectations of Stakeholders in Industrial Land Redevelopment Projects in China: The Case of Shanghai

2019 ◽  
Vol 11 (17) ◽  
pp. 4744 ◽  
Author(s):  
Fang He ◽  
Wendong Wu ◽  
Taozhi Zhuang ◽  
Yuan Yi
Keyword(s):  
Local Governments ◽  
Large Scale ◽  
Stakeholder Participation ◽  
Social Sustainability ◽  
Negative Externalities ◽  
Environmental Aspects ◽  
Industrial Land ◽  
Land User ◽  
Land Redevelopment ◽  
Residential Space

In China, while large-scale industrial land redevelopment has played a significant role in promoting economic growth, it has also triggered a series of unsustainable problems. To date, few studies have explored the expectations of stakeholders in industrial redevelopment projects in China. Gaining an in-depth understanding of the diverse expectations among core stakeholders is an essential step towards realizing social sustainability. This study aims to analyze these diverse expectations in industrial land redevelopment projects. For this purpose, 19 factors were identified and compared across the following core stakeholders: local governments, consulting experts, the general public, and original land users of state-led redevelopment and land user-led redevelopment projects, using questionnaires and interviews conducted in Shanghai, China. The findings show there to be tremendous differences between the expectations of different stakeholder groups in terms of economic, social and environmental aspects. Major differences were also found between the expectations of original land users across different project types. Moreover, the negative externalities, the balance between industrial and residential space, the diverse needs of original land users in different project types, and the barriers to stakeholders’ participation, in industrial land redevelopment in China were discussed. The findings of the current paper are conducive to optimizing stakeholder participation in industrial land redevelopment so as to enhance social sustainability.

scholarly journals Empirical Analysis of the Driving Factors of China’s ‘Land Finance’ Mechanism Using Soft Budget Constraint Theory and the PLS-SEM Model

2019 ◽  
Vol 11 (3) ◽  
pp. 742 ◽  
Author(s):  
Xinhua Zhu ◽  
Yigang Wei ◽  
Yani Lai ◽  
Yan Li ◽  
Sujuan Zhong ◽  
...  
Keyword(s):  
Economic Development ◽  
Local Governments ◽  
Driving Forces ◽  
Fiscal Decentralization ◽  
Budget Constraint ◽  
Driving Factors ◽  
Equation Modeling ◽  
Soft Budget Constraint ◽  
Land Transfer ◽  
Constraint Theory

“Land finance” refers to the key fiscal strategy in which local governments in China generate revenue through land grant premiums and land tax revenues. A burgeoning body of literature has focused on the driving factors of China’s land finance from different aspects including fiscal decentralization, revenue decentralization, competition among local governments, land marketization, infrastructure development, and economic development. However, little research has provided a comprehensive perspective integrating social, economic and institutional aspects to investigate the driving forces of these unique and profound issues in China. This study aims to investigate the driving factors and working mechanism of land finance. A theoretical and empirical model was proposed using soft budget constraint theory and least squares structural equation modeling (PLS-SEM). The panel data of 35 Chinese major cities were assessed between 2006 and 2015. The empirical results contend the following: (1) the land transfer and fiscal systems provide the key impetus for land financing because the land transfer system forms a stable modality, and the fiscal system is an important incentive for land financing; (2) the effects of the economic development and political system are insignificant; and (3) the political and land systems significantly influence economic development. Our contributions focus on two aspects. Firstly, a comprehensive framework of factors germane to land finance is constructed. Secondly, a new research methodology for land use study is proposed. To the best of our knowledge, the current study is the first to employ the PLS-SEM method to delineate and verify the influence paths between multiple driving factors and land finance in different cities. Hence, research reliability can be improved.

Option effect of land transfer by city governments: a case study of Hangzhou

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ling Zhang ◽  
Minghui Zheng ◽  
Zheyan Zhang
Keyword(s):  
Real Estate ◽  
Urban Areas ◽  
Local Governments ◽  
Positive Impact ◽  
Option Value ◽  
Hedonic Price ◽  
City Governments ◽  
Content Type ◽  
Land Transfer ◽  
The Impact

PurposeThis paper aims to study the impact of land options on the land transfer behaviour of Chinese city governments.Design/methodology/approachBased on the institutional environment of Hangzhou, China, the option pricing model is used to measure the option value of the trading plots. The effect of the option value on the land transfer price and the timing of transfers are estimated respectively, using the hedonic price model and the survival analysis models.FindingsThe results show that the option value has a significant explanation on land price and timing of land transfers. Under the effect of option value, the positive impact of fiscal pressure on the possibility of land transfer weakens. From the perspective of the annual option premium rate, the option premium is closely related to the real estate cycle. Option premiums are higher during booms but lower during recessions and in new urban areas.Practical implicationsBy revealing the distinction of land option premiums in different places and times, this paper provides a reference for city governments seeking a balance between real estate regulation and obtaining more land revenue.Originality/valueBy introducing policy variables that reflect the degree of tightness of real estate regulation and indicators of local government financial pressure, the paper discusses the impact of options on the transfer behaviour of local governments in different situations.

scholarly journals Differentiation and the Five As Concept in Digital Marketing of Small and Medium Enterprises During the Covid-19 Pandemic (a Study at Cepaka Village, Kediri Tabanan)

2021 ◽  
Author(s):  
Ni Luh Putu Agustini Karta ◽  
Rani Kusumo Wardani ◽  
Jimmy Harry Putu Suarthana
Keyword(s):  
Small And Medium Enterprises ◽  
Marketing Channels ◽  
Digital Marketing ◽  
Purchasing Decisions ◽  
Differentiation Strategy ◽  
Emergency Situations ◽  
Leadership Strategy ◽  
Priority Needs ◽  
Medium Enterprises ◽  
The Impact

The purpose of this study was to analyze the differentiation and the Five As digital marketing concept made by SMEs (Small and Medium Enterprises) in Cepaka Village during the Covid-19 pandemic in maintaining their competitiveness. This was qualitative research with key informants consisting of 14 SME managers in Cepaka Village, Kediri, Tabanan Bali. The differentiation was viewed from the basis of products, services, personnel, marketing channels and images as well as marketing 4.0 (digital marketing) implementation in aspects of Mapping Customer Path throughout the Five As concepts. On average, the income of the SMEs in Cepaka Village decreased by 50%. The differentiation strategy consisted of a cost leadership strategy, service variations, expansion of marketing channels and special promotions of 20-30%. Only 3% of SMEs added marketing personnel. The implementation of digital marketing with the Five As approach did not work as intended. Digital marketing had to be done because of the demands of the Covid-19 pandemic, but the impact from this digital marketing strategy has shifted and did not perform optimally. The purchasing decisions were not based on Aware, Appeal, Ask; however, the purchasing decisions were made because of the priority needs and impacts of Covid-19. There was no brand loyalty or repurchase. The implication of this research was to provide a reference for SMEs to prioritize operations in the Covid-19 pandemic or other emergency situations that disrupt the operations of SMEs. Keywords: differentiation, the five as concept, digital marketing, SMEs

scholarly journals MARKETIZATION ALLOCATION, LAND PRICE, AND LOCAL GOVERNMENT LAND SPECULATION, CHINA

2020 ◽  
Vol 24 (5) ◽  
pp. 335-347
Author(s):  
Juanfeng Zhang ◽  
Ting Yu ◽  
Lele Li ◽  
Danxia Zhang ◽  
Guochao Zhao ◽  
...  
Keyword(s):  
Panel Data ◽  
Local Government ◽  
Local Governments ◽  
Government Intervention ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Business Strategies ◽  
Land Price ◽  
Land Speculation ◽  
Bank System

Land value appreciation in the urbanization process has triggered market speculation. The Land Bank System strengthens local governments’ ability to control land supply and distribution rights. Local governments are considered close stakeholders. Under the pressure of guaranteeing economic growth and promotion, local governments have increased their dependence on land finances. It is important for investors to understand the local governments’ behaviors, and draw up business strategies. This study aims to examine the influencing factors and formation mechanism of local government land hoarding. The research hypothesis was tested by collating provincial-level panel data of China from 2004 to 2015 and using dynamic panel data estimated by the Generalized Method of Moments (GMM). A significant positive correlation was found between residential land price and land hoarding area by local governments. Land speculation in the eastern region is also more pronounced than that in central and western regions. In addition, empirical studies have found a correlation between the degree of government intervention and local government land hoarding behavior. The higher the degree of government intervention, the less land sold through bid invitation, auction, and listing, which are linked to the corresponding hoarding land area.

Small Business Financing for Supporting SMEs in Indonesia

2018 ◽  
pp. 269-289
Author(s):  
Eko Suyono ◽  
Amandeep Takhar ◽  
David Chitakunye
Keyword(s):  
Rural Areas ◽  
Local Governments ◽  
Small And Medium Enterprises ◽  
Rapid Expansion ◽  
Easy Access ◽  
Colonial Era ◽  
Financial Perspective ◽  
The Government ◽  
Medium Enterprises ◽  
Business Financing

Small and medium enterprises (SMEs) are the main pillars of a country economy, especially within developing countries. These types of businesses have existed since the Dutch colonial era. However, their existence is now threatened due to the rapid expansion of modern businesses that have spread into rural areas of Indonesia. Therefore, SMEs are in dire need of government assistance from both central and local governments, from a financial and non-financial perspective. In order to strengthen the SMEs' capital, so that they are able to sustain their businesses, this chapter intends to propose a financing model for SMEs that could be given by the government through financial institutions, so that SMEs will be able to gain easy access to capital resources. In the other words, this condition is expected to give maximum support to the development of SMEs. As a result, the SMEs will contribute to eradicating unemployment and poverty by strengthening the economy of Indonesia.

Spatial Dynamic Modeling for Increasing the Competitiveness of Small Medium Enterprises

2020 ◽  
pp. 16-30
Author(s):  
Hartrisari Hanggoro Hardjomidjojo ◽  
Harry Imantho ◽  
Anissa Damayanti
Keyword(s):  
Economic Activity ◽  
Spatial Model ◽  
Local Governments ◽  
Small And Medium Enterprises ◽  
Business Development ◽  
Market Penetration ◽  
Strategic Program ◽  
Small Medium Enterprises ◽  
Medium Enterprises

The Role of Small and Medium Enterprises (SMEs) in supporting Indonesian economic activity are significant. SMEs face many obstacles in their business development. Empowerment of SMEs in Bogor by local governments carried out in conjunction with the Department of Cooperatives and SMEs. This study establishes the spatial model design of SMEs in Bogor area to improve the competitiveness of products in Bogor city. The analysis shows that SMEs in Bogor city is still in the phase of development, market penetration, and also product development. The model shows the average performance index of SMEs in Bogor is only 62.29, 19 among 41 have index values about 50. From the competitiveness analysis, authors could see that among 41 SMEs can be categorized in 4 quadrants. Strategic program could be developed based on the position in the quadrant. It can be concluded that in general SMEs in Bogor city have not been ready for internationally competition. Government should develop specific strategy for each SMEs based on the quadrant position defined by the model

Small Business Financing for Supporting SMEs in Indonesia

2021 ◽  
pp. 1340-1355
Author(s):  
Eko Suyono ◽  
Amandeep Takhar ◽  
David Chitakunye
Keyword(s):  
Rural Areas ◽  
Local Governments ◽  
Small And Medium Enterprises ◽  
Rapid Expansion ◽  
Easy Access ◽  
Colonial Era ◽  
Financial Perspective ◽  
The Government ◽  
Medium Enterprises ◽  
Business Financing

Small and medium enterprises (SMEs) are the main pillars of a country economy, especially within developing countries. These types of businesses have existed since the Dutch colonial era. However, their existence is now threatened due to the rapid expansion of modern businesses that have spread into rural areas of Indonesia. Therefore, SMEs are in dire need of government assistance from both central and local governments, from a financial and non-financial perspective. In order to strengthen the SMEs' capital, so that they are able to sustain their businesses, this chapter intends to propose a financing model for SMEs that could be given by the government through financial institutions, so that SMEs will be able to gain easy access to capital resources. In the other words, this condition is expected to give maximum support to the development of SMEs. As a result, the SMEs will contribute to eradicating unemployment and poverty by strengthening the economy of Indonesia.

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