LV Wei, XU Hongwei：Land Finance, Urban Preference and the Urban-rural Income Gap in China

Abstract：Urban preference is a significant feature of land finance, which is an important reason for the expansion of urban-rural income gap in urbanization.According to the provincial panel data during 2001-2011, this paper analyzes the dynamic effects of the land finance growth and accelerates urbanization on urban-rural income gap from both national and regional levels by using PVAR model.The results show that: (1) in the short term, the growth of land granting fee and land granting area exacerbates urban-rural income gap, but in the long term it gradually weakens; (2) there exists regional heterogeneity in the effects of land finance growth on urban-rural income gap.The land finance has a stronger impact on urban-rural income gap in the central region, while there is a longer duration in the east region.

Key words： Land Finance    Urban Preference    Urban-rural Inequality    Urbanization

source:Finance & Trade Economics ,No.6,2015