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...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-05-01
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| Series: | Buildings |
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| Online Access: | https://www.mdpi.com/2075-5309/12/5/692 |
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| author | Dinghuan Yuan Yung Yau Wenyi Lin Jianxin Cheng |
| author_facet | Dinghuan Yuan Yung Yau Wenyi Lin Jianxin Cheng |
| author_sort | Dinghuan Yuan |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-10T03:12:29Z |
| format | Article |
| id | doaj.art-40a48afc50114066b406caaff4560568 |
| institution | Directory Open Access Journal |
| issn | 2075-5309 |
| language | English |
| last_indexed | 2024-03-10T03:12:29Z |
| publishDate | 2022-05-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Buildings |
| spelling | doaj.art-40a48afc50114066b406caaff45605682023-11-23T10:21:43ZengMDPI AGBuildings2075-53092022-05-0112569210.3390/buildings12050692An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in ChinaDinghuan Yuan0Yung Yau1Wenyi Lin2Jianxin Cheng3School of Public Administration and Emergency Management/Public Policy Research Institute, Jinan University, Guangzhou 510632, ChinaDepartment of Sociology and Social Policy & Institute of Policy Studies, Lingnan University, Hong Kong 999077, ChinaSchool of Public Administration and Emergency Management/Common Prosperity and National Governance Institute, Jinan University, Guangzhou 510632, ChinaSchool of Public Administration and Emergency Management/Research Center of Emergency Management, Jinan University, Guangzhou 510632, ChinaA 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.https://www.mdpi.com/2075-5309/12/5/692urban villagetransaction characteristicstransaction costsinstitutional arrangementsChina |
| spellingShingle | Dinghuan Yuan Yung Yau Wenyi Lin Jianxin Cheng An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China Buildings urban village transaction characteristics transaction costs institutional arrangements China |
| title | An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China |
| title_full | An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China |
| title_fullStr | An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China |
| title_full_unstemmed | An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China |
| title_short | An Analysis of Transaction Costs Involved in the Urban Village Redevelopment Process in China |
| title_sort | analysis of transaction costs involved in the urban village redevelopment process in china |
| topic | urban village transaction characteristics transaction costs institutional arrangements China |
| url | https://www.mdpi.com/2075-5309/12/5/692 |
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