关键词: 融资约束, 土地财政, 地方政府投资

Abstract: This paper establishes an analytical framework from the perspective of financing constraints for the relationship between local government investment and land finance. This paper examines the influence of financing constrains on local government investment based on panel data of local governments from 2002 to 2010 and hence provides evidence for following fiscal reform. The study shows that local government investment and land revenue shows a significant positive correlation. This suggests that local government is facing financial constraints and is overly dependent on land revenue. Moreover, fiscal gap caused by the mismatch of “decision power” and “fiscal power” may have reinforced constraints on local government financing， while financial development eases the financing constraints，supported by the lower correlation between government investment and land revenue in areas with more advanced financial development. In the end，the paper argues that fiscal and taxation system reform and financial market development could improve the financing conditions of local government and promote the local government to invest more effectively.

Key words: Financing Constraints, Land Finance, Local Government Investment