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Does Land Supply Promote Regional Inequality between Cities?——An Empirical Research Based on the Perspective of Reducing Financial Gap

【Authors】
LIU Chenhui, CHEN Changshi
【WorkUnit】
Dongbei University of Finance & Economics
【Abstract】

Based on measuring regional inequality index with perspective of “center-periphery” model, this paper examines the empirical effect of land income on regional inequality between cities by compensating the gap between local fiscal revenue and expenditure. According to the theoretical path of the heterogeneity effect of land income between different types of cities, the empirical research further draws the conclusion that the land finance has not aggravated inequality between developed regions and underdeveloped areas, contrary to the public intuition in recent years, but helped solve the problem of Inequality. The availability of more ample and flexible financial income from land supply, has become a major source of revenue for government investment in underdeveloped areas. As a periphery city, investing in infrastructure construction and using its leverage with land income have become important approaches to catch up with the central city.

JEL:R14, O18

 

【KeyWords】
Land Supply, Regional Inequality, Financial Gap, Center-Periphery Model