This paper conducts an empirical study on the land supply with
Chinese characteristics in terms of the most different characteristics between
China and other major economies in the world, such as Hukou (household
registration) system, by combining qualitative and quantitative analysis. The
main purpose of this paper is to use land price to measure city amenity in
China. By doing this, the spatial distribution of urban residents becomes much
more understandable. This paper firstly points out the driving forces of
population migration to cities are not only wages, but also cities’ amenity.
The paper suggests that it is important to quantify the amenity of a city to
understand the specific mechanism of amenity in population flow and regional
development. It is found that the amenity of Hukou of other grades is far less
than that of those top cities like Beijing. The paper suggests this
polarization not only causes the sense of unfairness, but also damages the free
flow of elements and economic efficiency. This paper has also recommended some
useful thoughts on this issue, like to remove the limitation of population in
the super first tier or first tier cities to give full play to the
agglomeration effect and advantages of big cities. Besides, the supply of
public goods cannot be too concentrated in large cities. The government needs
to constantly narrow the regional public service gap on the supply side, gradually
eliminate the privileges behind Hukou, and let the Hukou system return to its
JEL classification numbers: R20, R58.
Keywords: Hukou, Amenity, Urban Land Supply.