Skip to main content
SpringerLink
Log in
Book cover

Institutionalization of State Policy pp 1–16Cite as

Introduction

  • Chapter
  • First Online:

  • 360 Accesses

Part of the book series: Dynamics of Asian Development ((DAD))

Abstract

Since economic reforms began in the 1980s, the central economic planning system of China has undergone profound institutional changes with the governance structure in urban housing market experiencing significant restructuring. The evolving institutional arrangements in urban housing sector have transformed the role of the key institutional players, such as state owned enterprises (SOEs) and provincial and municipal governments. This chapter problematizes the interactions between the different players to set the direction for the analysis in the subsequent chapters. The key concepts pertinent to this study are also presented here. Particular focus is placed on the changes experienced by the SOEs, and the governance relationships between the central, provincial and municipal governments in the delivery affordable housing in urban locations in China since economic reforms were launched in 1978.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    See for example, Woo (2011), Yueh (2013), Rasiah et al. (2013).

  2. 2.

    While it also can be found certain number of huge collective entities that are included by SASAC supervision list, it is not the aim of this research to clarify the categorization of modern SOE in a definitive way.

References

  • Acemoglu, D., & Robinson, J. (2012). Why nations fail: The origins of power, prosperity, and poverty. USA: Crown Publishing Group.

    Google Scholar 

  • Adams, B. (2009). Macroeconomic implications of China Urban housing privatization, 1998–1999. Journal of Contemporary China, 18(62), 881–888. doi:10.1080/10670560903174721.

    Article  Google Scholar 

  • Bao, S. M., Chang, G. H., Sachs, J. D., & Woo, W. T. (2002). Geographic factors and China’s regional development under market reforms, 1978–1998. China Economic Review, 13(1), 89–111. doi:Pii s1043-951x(02)00055-x.

    Google Scholar 

  • Barboza, D. (2010). State-owned bidders fuel China’s land boom. The New York Times. Retrieved Auguest 14, 2013 from http://www.nytimes.com/2010/08/02/business/global/02chinareal.html.

  • Baumol, W. J., & Association, I. E. (1980). Public and Private Enterprise in a Mixed Economy: Proceedings of a Conference Held by the International Economic Association in Mexico City. London: St. Martinś Press.

    Google Scholar 

  • Boettke, P. J., Coyne, C. J., Davis, J., Guala, F., Marciano, A., Runde, J., & Schabas, M. (2006). Where economics and philosophy meet: Review of the elgar companion to economics and philosophy with responses from the authors*. The Economic Journal, 116(512), F306–F325. doi:10.1111/j.1468-0297.2006.01101.x.

    Article  Google Scholar 

  • Buchanan, J. M. (1986). Liberty, market and state: political economy in the 1980s. New Jersey: Wheatsheaf Books.

    Google Scholar 

  • Chen, A. (2010). Reducing China’s regional disparities: Is there a growth cost? China Economic Review, 21(1), 2–13. doi:10.1016/j.chieco.2009.11.005.

    Article  Google Scholar 

  • Chen, J., Hao, Q., & Stephens, M. (2010). Assessing housing affordability in post-reform China: A case study of Shanghai. Housing Studies, 25(6), 877–901.

    Google Scholar 

  • Cheong, K. C., Li, R., Tan, E.-C., & Zhang, M. (2011). Must China’s state enterprises follow the path of western governance to thrive? Paper presented at the 3rd International Conference on Information and Financial Engineering, Shanghai.

    Google Scholar 

  • China Times. (2010, January 8). SASAC remain ambiguous on SOE’s evolvement in housing market Retrieved May 12, 2013, from http://3g.163.com/money/10/0108/22/5sHPHCME00253B0H.HTML.

  • Clapham, D., & Kintrea, K. (2000). Community-based housing organisations and the local governance debate. Housing Studies, 15(4), 533–559.

    Article  Google Scholar 

  • Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405. doi:10.1111/j.1468-0335.1937.tb00002.x.

    Article  Google Scholar 

  • Coase, R. H. (1992). The institutional structure of production. The American Economic Review, 82(4), 713–719. doi:10.2307/2117340.

    Google Scholar 

  • Commons, J. R. (1934). Institutional economics: Its place in political economy (Vol. II). New York: Macmillan.

    Google Scholar 

  • Démurger, S. (2001). Infrastructure development and economic growth: An explanation for regional disparities in China? Journal of Comparative Economics, 29(1), 95–117. doi:10.1006/jcec.2000.1693.

    Article  Google Scholar 

  • Deng, L., Shen, Q., & Wang, L. (2009). Housing policy and finance in China: A literature review. U.S Department of Housing and Urban Development.

    Google Scholar 

  • Deng, Y., Morck, R., Wu, J., & Yeung, B. (2011). Monetary and fiscal stimuli, ownership structure and China’s housing market.

    Google Scholar 

  • Diao, L. (2010). Property tax reform and its effect on housing price: Evidence from China. University of Chicago. Retrived Augest 20, 2014, from http://www.law.uchicago.edu/files/file/lin%20wensheng%20paper.pdf.

  • Du, X., Wu, C., & Huang, Z. (2008). Housing price, public expenditure and real estate taxes in China. Proceedings of 2008 International Conference on Construction and Real Estate Management, Vols. 1 and 2. Retrieved from <Go to ISI>://WOS:000262502700312.

    Google Scholar 

  • Duda, M., Zhang, X., & Dong, M. (2005). China’s homeownership-oriented housing policy: An examination of two programs using survey data from Beijing. Cambridge: Harvard University.

    Google Scholar 

  • Evans, P. B., Rueschemeyer, D., & Stephens, E. H. (1985). States versus markets in the world-system. California: Sage Publications.

    Google Scholar 

  • Fan, C. V., Hall, P. V., & Wall, G. (2009). Migration, hukou status, and labor-market segmentation: The case of high-tech development in Dalian. Environment and Planning A, 41(7), 1647–1666. doi:10.1068/a4165.

    Article  Google Scholar 

  • Fleisher, B., Li, H., & Zhao, M. Q. (2010). Human capital, economic growth, and regional inequality in China. Journal of Development Economics, 92(2), 215–231. doi:10.1016/j.jdeveco.2009.01.010.

    Article  Google Scholar 

  • Gyourko, J. (2011). Wharton’s Joseph Gyourko on escaping China’s ‘Unsustainable’ property boom unscathed. Retrieved September 2, 2011, from http://www.knowledgeatwharton.com.cn/index.cfm?fa=article&articleid=2445&languageid=1.

  • He, S., Liu, Y., Wu, F., & Webster, C. (2010). Social groups and housing differentiation in China’s urban villages: An institutional interpretation. Housing Studies, 25(5), 671–691.

    Article  Google Scholar 

  • Ho, M. H. C., & Kwong, T. M. (2002). Housing reform and home ownership behaviour in China: A case study in Guangzhou. Housing Studies, 17(2), 229–244. doi:10.1080/02673030220123207.

    Article  Google Scholar 

  • Huang, Y. Q. (2003). Renters’ housing behaviour in transitional urban China. Housing Studies, 18(1), 103–125. doi:10.1080/0267303032000076867.

    Article  Google Scholar 

  • Huang, Y. Q. (2004). Housing markets, government behaviors, and housing choice: A case study of three cities in China. Environment and Planning A, 36(1), 45–68. doi:10.1068/a35158.

    Article  Google Scholar 

  • Huang, Y. Q. (2012). Low-income housing in Chinese cities: Policies and practices. China Quarterly, 212, 941–964. doi:10.1017/s0305741012001270.

  • Huang, Y. Q., & Clark, W. A. V. (2002). Housing tenure choice in transitional urban China: A multilevel analysis. Urban Studies, 39(1), 7–32. doi:10.1080/00420980220099041.

    Article  Google Scholar 

  • Huang, Y. Q., & Deng, F. F. (2006). Residential mobility in Chinese cities: A longitudinal analysis. Housing Studies, 21(5), 625–652. doi:10.1080/02673030600807084.

    Article  Google Scholar 

  • Huang, Y. Q., & Jiang, L. W. (2009). Housing inequality in transitional Beijing. International Journal of Urban and Regional Research, 33(4), 936–956. doi:10.1111/j.1468-2427.2009.00890.x.

    Article  Google Scholar 

  • Huang, Z., Wu, C., & Du, X. (2008). Analyzing real estate price and macroeconomic fluctuation in China based on VAR model. Paper presented at the recent advance in statistics application and related areas, Pts 1 and 2. Retrieved from <Go to ISI>://WOS:000260249500288.

    Google Scholar 

  • Hui, X., & Huang, H. (2008). Real estate price impact factors analysis based on spatial econometrics. Paper presented at the 2008 4th International Conference on Wireless Communications, Networking and Mobile Computing, Vols. 1–31.

    Google Scholar 

  • Hui, E. C. M., & Yue, S. (2006). Housing price bubbles in Hong Kong, Beijing and Shanghai: A comparative study. Journal of Real Estate Finance and Economics, 33(4), 299–327. doi:10.1007/s11146-006-0335-2.

    Article  Google Scholar 

  • Jessop, B. (1990). State theory: Putting the capitalist state in its place. Pennsylvania: Pennsylvania State University Press.

    Google Scholar 

  • Katz, J. (2004) Market-oriented reforms, globalization and the recent transformation of Latin American innovation systems. Oxford Development Studies, 32(3), 375–387. doi:10.1080/1360081042000260584.

  • Lai, O. K. (1998). Governance and the housing question in a transitional economy, the political economy of housing policy in China reconsidered. Habitat International, 22(3), 231–243. doi:10.1016/s0197-3975(98)00008-3.

    Article  Google Scholar 

  • Lan, J. (2009). Dynamic analysis of tax influence on housing price, supply and demand. Paper presented at the Criocm 2009: International Symposium on Advancement of Construction Management and Real Estate, Vols. 1–6. Retrieved from <Go to ISI>://WOS:000281119900127.

    Google Scholar 

  • Lansley, S. (1979). Housing and public policy. London: Croom Helm.

    Google Scholar 

  • Lee, J. (2000). From welfare housing to home ownership: The dilemma of China’s housing reform. Housing Studies, 15(1), 61–76. doi:10.1080/02673030082478.

    Article  Google Scholar 

  • Lee, J., & Zhu, Y. P. (2006). Urban governance, neoliberalism and housing reform in China. Pacific Review, 19(1), 39–61. doi:10.1080/09512740500417657.

    Article  Google Scholar 

  • Li, J. (2010). Incentive structure and market performance: Institutional anaysis of governments’ roles affecting land and housing prices in China. Hong Kong: Doctor of Philosophy, Hong Kong Polytechnic University.

    Google Scholar 

  • Li, S. M., & Huang, Y. Q. (2006). Urban housing in China: Market transition, housing mobility and neighbourhood change. Housing Studies, 21(5), 613–623.

    Article  Google Scholar 

  • Li, S. M., & Li, L. M. (2006). Life course and housing tenure change in urban China: A study of Guangzhou. Housing Studies, 21(5), 653–670. doi:10.1080/02673030600807159.

    Article  Google Scholar 

  • Li, S. M., & Yi, Z. (2007). The road to homeownership under market transition—Beijing 1980–2001. Urban Affairs Review, 42(3), 342–368. doi:10.1177/1078087406292523.

    Article  Google Scholar 

  • Li, L., & Zhang, Z. F. (2012). The research on the conflict between social housing and land fiscal of local government in China. Beijing: China Architecture and Building Press.

    Google Scholar 

  • Li, J., Chiang, Y.-H., & Choy, L. (2011). Central–local conflict and property cycle: A Chinese style. Habitat International, 35(1), 126–132. doi:10.1016/j.habitatint.2010.06.002.

    Article  Google Scholar 

  • Lin, C. H., & Comm, E. B. M. O. (2011). Interrelationship between Housing Price and Public Finance in China.

    Google Scholar 

  • Logan, J. R., Fang, Y., & Zhang, Z. (2009). Access to housing in Urban China. International Journal of Urban and Regional Research, 33(4), 914–935. doi:10.1111/j.1468-2427.2009.00848.x.

    Article  Google Scholar 

  • Logan, J. R., Fang, Y., & Zhang, Z. (2010). The winners in China’s Urban housing reform. Housing Studies, 25(1), 101–117. doi:Pii 917820764 10.1080/02673030903240660.

  • Lu, D. (2002). Rural-urban income disparity: impact of growth, allocative efficiency, and local growth welfare. China Economic Review, 13(4), 419–429. doi:Pii s1043-951x(02)00100-1 10.1016/s1043-951x(02)00100-1.

  • Majale, M., Tipple, G., & French, M. (2011). Affordable land and housing in Asia. In R. Rollnik & M. French (Eds.), Affordable land and housing (Vol. 2). United Nations human settlements programme.

    Google Scholar 

  • Mak, S. W. K., Choy, L. H. T., & Ho, W. K. O. (2007). Privatization, housing conditions and affordability in the People’s Republic of China. Habitat International, 31(2), 177–192. doi:10.1016/j.habitatint.2006.11.003.

    Article  Google Scholar 

  • Malpass, P., & Mullins, D. (2002). Local authority housing stock transfer in the UK: From local initiative to national policy. Housing Studies, 17(4), 673–686. doi:10.1080/02673030220144402.

    Article  Google Scholar 

  • Milbourne, P. (1998). Local responses to central state restructuring of social housing provision in rural areas. Journal of Rural Studies, 14(2), 167–184. doi:10.1016/s0743-0167(97)00055-7.

    Article  Google Scholar 

  • Murdoch, J., & Abram, S. (1998). Defining the limits of community governance. Journal of Rural Studies, 14(1), 41–50. doi:10.1016/s0743-0167(97)00046-6.

    Article  Google Scholar 

  • Nelson, R. (2008a). What enables rapid economic progress: What are the needed institutions? Research Policy, 37(1), 1–11. doi:10.1016/j.respol.2007.10.008.

    Article  Google Scholar 

  • Nelson, R. (2008b). Economic development from the perspective of evolutionary economic theory. Oxford Development Studies, 36(1), 9–22.

    Article  Google Scholar 

  • Nelson, R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge :Belknap Press of Harvard University Press.

    Google Scholar 

  • North, D. C. (1991). Institutions. The Journal of Economic Perspectives, 5(1), 97–112.

    Article  Google Scholar 

  • North, D. C. (1997). The contribution of the new institutional economics to an understanding of the transition problem. Finland: UNU World Institute for Development Economics Research (UNU/WIDER).

    Google Scholar 

  • Paik, W., & Lee, K. (2012). I want to be expropriated!: The politics of xiaochanquanfang land development in suburban China. Journal of Contemporary China, 21(74), 261–279. doi:10.1080/10670564.2012.635930.

    Article  Google Scholar 

  • Pan, Z. (2004). Housing quality of communist party members in Urban China: A comparative study. Housing Studies, 19(2), 193–205.

    Article  Google Scholar 

  • Perkins, D. H. (2014a). The centrally planned economy (1949–1984). In G. Chow & D. H. Perkins (Eds.), Routledge handbook of the Chinese economy (pp. 41–54). London: Routledge.

    Google Scholar 

  • Perkins, D. H. (2014b). The economic transformation of China. Singapore: World Scientific Publications.

    Google Scholar 

  • People’s Daily. (2012). Xishan coal and electricity power: 490 Hunderd Million for affordable housing, China Securities Journal. Retrieved from http://energy.people.com.cn/n/2012/0906/c71661-18933119.html.

  • Polanyi, K. (1944). The great transformation: The political and economic origins of our time. New York: Rinehart Press.

    Google Scholar 

  • Poulantzas, N. A. (1973). Political power and social classes. New York: Sheed and Ward.

    Google Scholar 

  • Rasiah, R. (2011). The role of institutions and linkages in learning and innovation. International Journal of Institutions and Economies, 3(2), 165–172.

    Google Scholar 

  • Rasiah, R. (2013) Macro, meso and micro coordination and technological progress: Catch up experiences of Samsung and Taiwan semiconductor manufacturing corporation. In G. Dutrenit, K. Lee, R. R Nelson & L. Vera-Cruz and Soete (Eds.), Learning, capability building and innovation for development, (pp. 202–221) London: Pelgrave Macmillan.

    Google Scholar 

  • Rasiah, R., Miao, Z., & Xin, K. X. (2013). Can China’s miraculous economic growth continue? Journal of Contemporary Asia, 43(2), 295–313. doi:10.1080/00472336.2012.740940.

    Article  Google Scholar 

  • Rosen, K. T., & Ross, M. C. (2000). Increasing home ownership in urban China: Notes on the problem of affordability. Housing Studies, 15(1), 77–88.

    Article  Google Scholar 

  • Shen, X. (2006, October 31). The black humour of year housing reform. Liaowang Orient Weekly.

    Google Scholar 

  • Song, J. (2010). Moving purchase and sitting purchase: Housing reform and transition to homeownership in Beijing. Housing Studies, 25(6), 903–919.

    Article  Google Scholar 

  • Stafford, D. C. (1978). The economics of housing policy. London: Croom Helm.

    Google Scholar 

  • Stimson, J. A., Mackuen, M. B., & Erikson, R. S. (1995). Dynamic Representation. American Political Science Review, 89(3), 543–565. doi:10.2307/2082973.

    Article  Google Scholar 

  • Sun, B. (2004). A general research idea on the house welfare of Urban low-income group. Working paper 155. CASS: Beijing.

    Google Scholar 

  • Thorstein, V. (1915). The theory of the leisure class: An economic study of institutions. New York: Macmillan.

    Google Scholar 

  • Wang, D. G., & Li, S. M. (2006). Socio-economic differentials and stated housing preferences in Guangzhou, China. Habitat International, 30(2), 305–326. doi:10.1016/j.habitatint.2004.02.009.

    Article  Google Scholar 

  • Wang, Y. P., & Murie, A. (1999). Commercial housing development in urban China. Urban Studies, 36(9), 1475–1494. doi:10.1080/0042098992881.

    Article  Google Scholar 

  • Wang, Y. P., Wang, Y. L., & Bramley, G. (2005). Chinese housing reform in state-owned enterprises and its impacts on different social groups. Urban Studies, 42(10), 1859–1878. doi:10.1080/00420980500231746.

    Article  Google Scholar 

  • Wang, X., Yao, F., & Zhang, L. (2009). Change of loan interest and listed companies of real estate: An event study for China.

    Google Scholar 

  • Weisbrod, B. A. (1988). The nonprofit economy. cambridge: Harvard University Press.

    Google Scholar 

  • Wen, H., & Zhou, Z. (2009). The impact of interest rate and exchange rate adjustment on price fluctuation of real estate in China: Based on VEC model from 1998–2008.

    Google Scholar 

  • Wong, F. K. W., Hui, E. C. M., Kong, L. S. P., & Howes, R. (1998). Urban housing reform in China: A review of welfare housing development in Beijing (1987–1997). Asian Geographer, 17(1–2), 55–67. doi:10.1080/10225706.1998.9684035.

    Article  Google Scholar 

  • Woo, W. T. (2011) China’s economic growth engine: The likely types of hardware failure, software failure and power supply failure, BOFIT. Discussion papers, No. 8, Helsinki.

    Google Scholar 

  • Wu, F. L. (2001). China’s recent urban development in the process of land and housing marketisation and economic globalisation. Habitat International, 25(3), 273–289. doi:10.1016/s0197-3975(00)00034-5.

    Article  Google Scholar 

  • Wu, W. P. (2004). Sources of migrant housing disadvantage in urban China. Environment and Planning A, 36(7), 1285–1304. doi:10.1068/a36193.

    Article  Google Scholar 

  • Yan, J. H. (2009). Housing price, bank lending and monetary policy in China.

    Google Scholar 

  • Yang, Z., & Shen, Y. (2008). The affordability of owner occupied housing in Beijing. Journal of Housing and the Built Environment, 23(4), 317–335. doi:10.1007/s10901-008-9120-2.

    Article  Google Scholar 

  • Ye, J. P., & Wu, Z. H. (2008). Urban housing policy in China in the macro-regulation period 2004–2007. Urban Policy and Research, 26(3), 283–295. doi:10.1080/08111140802301740.

    Article  Google Scholar 

  • Yu, K. (2007). An empirical analysis on determinants of urban residential property prices in China.

    Google Scholar 

  • Yueh, L. (2013). China’s growth: The making of an economic superpower. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Zhang, Y. (2008). The real estate cycle of China in 1990–2007.

    Google Scholar 

  • Zhang, J., & Zhou, L. (2011). Incentive mechanism design of access management policy in affordable housing and analysis. Cities, 28(2), 186–192. doi:10.1016/j.cities.2010.12.002.

    Article  Google Scholar 

  • Zhang, J., Yuan, J., & Skibniewski, M. J. (2011). The analysis on the policy of access to economically affordable housing in china: An area calculation model based on the incentive mechanism design. International Journal of Strategic Property Management, 15(3), 231–256. doi:10.3846/1648715x.2011.613236.

    Article  Google Scholar 

  • Zhao, Y. S., & Bourassa, S. C. (2003). China’s urban housing reform: Recent achievements and new inequities. Housing Studies, 18(5), 721–744. doi:10.1080/02673030304254.

    Article  Google Scholar 

  • Zhao, X. B., & Tong, S. P. (2000). Unequal economic development in China: Spatial disparities and regional policy reconsideration, 1985–1995. Regional Studies, 34(6), 549–561.

    Article  Google Scholar 

  • Zhu, J. M. (1999). Local growth coalition: The context and implications of China’s gradualist urban land reforms. International Journal of Urban and Regional Research, 23(3), 534–548. doi:10.1111/1468-2427.00211.

  • Zhu, Y. P. (2012). Policy entrepreneur, civic engagement and local policy innovation in China: Housing monetarisation reform in Guizhou Province. Australian Journal of Public Administration, 71(2), 191–200. doi:10.1111/j.1467-8500.2012.00768.x.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Malaya, Kuala Lumpur, Malaysia

    Miao Zhang & Rajah Rasiah

Authors
  1. Miao Zhang
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Rajah Rasiah
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Miao Zhang .

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer Science+Business Media Singapore

About this chapter

Cite this chapter

Zhang, M., Rasiah, R. (2015). Introduction. In: Institutionalization of State Policy. Dynamics of Asian Development. Springer, Singapore. https://doi.org/10.1007/978-981-287-570-9_1

Download citation

Publish with us

Policies and ethics

Search

Navigation