Centrally Located “Urban Village” Hao WU University of Melbourne Australia ERES 2016 the University of Regensburg Germany 11 June 11am-12:30pm VG 004 Session 68

Theory/Literature Tenure security “Market” Chinese study, international, empirical Migration welfare, poverty/ethics, power, and economic analysis of externality Land acquisition and compensation “Indigenous right”

Core and Periphery Urban core – Non-farm production use confirmed – High social cost for development – Labour focused i.e. use value Urban periphery – Emerging urban land use – Opportunity cost low – Rural-urban transition by price

Low-cost housing Comparative location advantage “Small property rights” Lower rental price ‘Informal’ leasing market

No “slum” Collective land ownership Village collective enforcer Culture and social norm enforcement State enforcement – e.g. company & criminal laws

Redevelopment Acquisition/compensation mechanism Top-down approach – E.g. Beijing and Shanghai “Collective game” approach – E.g. Guangzhou and Shenzhen

“Re-integration” Lagged urbanisation “Collective redevelopment” – Governance and enforcement – “informal economy and markets” Integration and/or diversity?

The “social groups” Indigenous villagers Village collective (‘local government’) Renters City/district government Developer

“Lei-de” Over 70% in dividend income in early 2000s – Average household dividend approx RMB – Rental income Over 25% from rental income in early 2000s Over 80% without formal employment Part of CBD development since late 1990s Result: high-end residential neighborhood

“Shi-pai” Shared dividend $40-50 million in early 2000s. – Average household dividend approx. 50,000 RMB. – Rental income Shop, hotel, warehouse, office Village management committee – Welfare, infrastructure (local), security Result: low-cost rental neighborhood

“Xian-cun” Demolition, relocation and redevelopment process was started in 2011 Corruption charge: village collective Result: idle assets and social problems

Source:

Some Propositions The “Health” of urban core village History matters Allocation efficiency Tragedy of the commons Tri-layer interest group bargaining Active capital and rental market Uncertainty and entrepreneurship

Empirical treatment Performance Rural-urban conversion – Competition – Enforcement – Interaction

THANKS & QUESTION. Hao WU