1. 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

2. 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”

3. 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

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

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

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

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

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

9. “Lei-de” Over 70% in dividend income in early 2000s – Average household dividend approx. 4000 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

13. “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

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

18. Source: www.douban.com

20. 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

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

22. THANKS & QUESTION. Hao WU haow@unimelb.edu.au