{"title":"The Fiscal Impact of County-to-Urban District Conversion in China","authors":"Huiping Li, H. Guo, Pengju Zhang","doi":"10.1177/10780874221098152","DOIUrl":null,"url":null,"abstract":"Municipal annexation has been one of the most widely adopted instruments for urban growth in the United States. Scholars of public choice and regional studies have long debated the fiscal effect of local government annexation. Few studies, however, examine the fiscal effect of municipal administrative annexations in China, where prefectural cities have extensively annexed county-level governments through forcefully converting rural counties into urban districts in a top-down manner. Employing a difference-in-differences (DID) method coupled with an event study approach, we analyzed a panel data set of 282 prefectural cities from 2007 to 2015 to examine the fiscal impact of annexation in China. The findings show that prefectural cities have significantly increased their land conveyance fees through administrative annexation. Given that land conveyance fees serve as one of the most important own-source revenues at the local level, our findings shed light on the crucial link among the urbanization process, government reorganization, and local land finance in China and, potentially, in other transition countries.","PeriodicalId":51427,"journal":{"name":"Urban Affairs Review","volume":"59 1","pages":"892 - 917"},"PeriodicalIF":2.4000,"publicationDate":"2022-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Urban Affairs Review","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1177/10780874221098152","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"URBAN STUDIES","Score":null,"Total":0}
引用次数: 3
Abstract
Municipal annexation has been one of the most widely adopted instruments for urban growth in the United States. Scholars of public choice and regional studies have long debated the fiscal effect of local government annexation. Few studies, however, examine the fiscal effect of municipal administrative annexations in China, where prefectural cities have extensively annexed county-level governments through forcefully converting rural counties into urban districts in a top-down manner. Employing a difference-in-differences (DID) method coupled with an event study approach, we analyzed a panel data set of 282 prefectural cities from 2007 to 2015 to examine the fiscal impact of annexation in China. The findings show that prefectural cities have significantly increased their land conveyance fees through administrative annexation. Given that land conveyance fees serve as one of the most important own-source revenues at the local level, our findings shed light on the crucial link among the urbanization process, government reorganization, and local land finance in China and, potentially, in other transition countries.
期刊介绍:
Urban Affairs Reveiw (UAR) is a leading scholarly journal on urban issues and themes. For almost five decades scholars, researchers, policymakers, planners, and administrators have turned to UAR for the latest international research and empirical analysis on the programs and policies that shape our cities. UAR covers: urban policy; urban economic development; residential and community development; governance and service delivery; comparative/international urban research; and social, spatial, and cultural dynamics.