In the era of China's economic growth and urbanisation, providing adequate and affordable housing for rural—urban migrants in urban areas is crucial for the success of China's multifaceted reforms. Yet the urban housing provision system has overlooked the needs of rural migrants since the reforms. Urbanising villages, a unique product of China's urbanisation and land reform, provide affordable housing for rural migrants. However, these urbanising villages are rejected by policy-makers due to their associated social and environment problems. In this paper, a multinomial logit model of housing type choice is adopted, in which people choose from a number of mutually exclusive housing types. Regression results indicate that rural migrants are shunned by the urban housing market. It is argued that, without accompanying programmes that include rural migrants in the urban housing market, policies that focus on demolishing urbanising villages could be misguided.

This paper examines the characteristics of urban spatial development in Beijing and identifies the extent to which these characteristics can be attributed to the emerging land market in Beijing as well as the impact of land policy reform. Based on the observations of land use rights granted from 1993 to the first half of 2000 in the built-up area of Beijing, empirical analyses illustrate that both land prices and land development density decrease with distance to the city core. It further provides evidence that the slope of the land rent curve also depends on land use types. This leads to the conclusion that the land market influences land development decisions and urban form. Finally, it shows that the slope of the land rent curve and the elasticity of land-capital substitution change over time. The former declines, as expected. This is because Beijing's massive investments in transport have reduced transport costs, which in turn has shifted the land rent curve. The latter rises, implying the price effect on land development density. Both changes—in land rent function and the elasticity of land-capital substitution-point to the maturing of the Beijing land market. It should be mentioned that there are enormous land developments outside the land market (land development on administratively allocated land). These developments can significantly distort urban land use patterns portrayed through this study.

‘New Geographical Economy’ suggests an inverted-U-shaped relationship between transport costs and regional economic concentration. By using data on Chinese prefectures, this paper examines the relationship between transport development and economic concentration, to investigate the ‘point effect’ and ‘network effect’ of transport stocks and to gauge their relative magnitudes. The paper concludes the following: the development of urban roads leads to rising GDP shares in the city-proper for both manufacturing and service industries; major regional roads have the same effect. A ‘point effect’ is found for both urban roads and major regional roads in GDPs. There are spillover effects for both urban roads and major regional roads. Finally, different types of transport infrastructure have different economic impacts. The policy implication is that the urban–rural economic growth gap is likely to continue to increase with urban and regional transport development during the rapid urbanisation concurrently undertaken.

This paper investigates the linkage between emerging urban spatial development and institutional arrangements in China. Emerging spatial patterns, which are prevalent and sizable so that any impacts will be substantial, include dispersed employment concentration, fragmented land development, over-scaled land development, leapfrogging development, and whack-a-mole development. From the institutional point of view, these patterns are associated with decentralization, fiscal incentives for local government, land regulations, and fragmented planning system. It is concluded that these emerging spatial patterns significantly affect long term city sustainable growth and comprehensive reforms are needed to promote efficient urban spatial forms. It is further concluded that labor division between planning and markets should be reshaped in determining urban spatial growth by shifting planning to focus on zoning that provides sufficient development room in a long term and making markets to decide the timing of land development.