An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China

A well-designed institutional arrangement for urban village redevelopment projects (UVRPs) must consider transaction costs, but academic papers discussing it from the perspective of transaction cost economics are lacking. This paper applies theory of transaction cost economics to analyse the types a...

Full description

Saved in:
Bibliographic Details
Published in:Buildings (Basel) 2022-05, Vol.12 (5), p.692
Main Authors: Yuan, Dinghuan, Yau, Yung, Lin, Wenyi, Cheng, Jianxin
Format: Article
Language:English
Subjects:
China
Cost analysis
Design
Economic analysis
Economic growth
Economics
Efficiency
Externality
Housing
institutional arrangements
Land use
Production costs
Property rights
Redevelopment
Scientific papers
transaction characteristics
transaction costs
urban village
Urban villages
Urbanization
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:A well-designed institutional arrangement for urban village redevelopment projects (UVRPs) must consider transaction costs, but academic papers discussing it from the perspective of transaction cost economics are lacking. This paper applies theory of transaction cost economics to analyse the types and sizes of transaction costs and who bears these costs during redevelopment when implementing UVRPs in China. This paper finds that transactions in UVRPs have high asset specificity, high uncertainty and low frequency, which easily results in high levels of transaction costs. Based on 439 UVRPs collected from seven cities, this paper finds that UVRPs implemented with top–down institutional arrangements remain prevalent in China. Based on semi-structured interviews with participating parties, this paper proves that the sizes and types of transaction costs and the distribution of these costs borne by different participating parties vary with the change of stage under dissimilar institutional arrangements. This implies that a high level of transaction costs at one stage does not necessarily mean the costs stay high at another stage. Transaction costs have essential implications for process efficiency, so policymakers need to consider transaction costs and use hybrid institutional arrangements to enhance the efficiency and sustainability of policies.
ISSN:2075-5309
2075-5309
DOI:10.3390/buildings12050692