The Impact of Land Expropriation Price Distortion on Common Prosperity for All

HU Lian; JI Luhan; YAO Shaoqun; SHENG Di

Journal of South China normal University (Social Science Edition) > 2023 > (3): 62-78.

HU Lian, JI Luhan, YAO Shaoqun, SHENG Di. The Impact of Land Expropriation Price Distortion on Common Prosperity for All[J]. Journal of South China normal University (Social Science Edition), 2023, (3): 62-78.

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The Impact of Land Expropriation Price Distortion on Common Prosperity for All

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Received Date: February 26, 2023
Available Online: July 26, 2023

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Abstract

Common prosperity is the essential requirement of socialism, but the gap between urban and rural regional development and income distribution is still large. This paper uses the ratio of the average compensation standard of land expropriation and the average land transfer price collected by hand to measure the distortion of land expropriation price in each province, and investigates the impact of land expropriation price distortion on China's common prosperity. The results show that : (1) the adjustment of compensation standard of land expropriation is slow, which is the main reason for the distortion of land expropriation price. (2) The distortion of land expropriation price will increase the urban-rural income ratio. If the distortion of land expropriation price decreases by 1%, the urban-rural income ratio will decrease by 0.616%. (3) The distortion of land acquisition price will inhibit the level of rural entrepreneurship, resulting in inadequate rural development; (4) The distortion of land expropriation price will worsen the structure of urban income distribution and is not conducive to expanding the middle-income group. The distortion of land expropriation price ultimately affects common prosperity by influencing the income gap between urban and rural areas, the inadequacy of rural development and the income gap within cities and towns. It is the policy suggestion of this paper that establishing a reasonable compensation mechanism for land acquisition, promoting the market entry of rural collective business construction land, increasing the share of farmers' land value-added income, adjusting the direction of fiscal policy, increasing the supply of low-cost public rental housing and subsidized housing in a timely manner, and strengthening policy publicity and legal protection of farmers' land rights are the policy recommendations of this paper. This study has important implications for the effective implementation of rural revitalization and the substantive progress of promoting common prosperity.
- Standard of Compensation for Land Acquisition,
- distortion of land acquisition price,
- Land Finance,
- common prosperity

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