Anatomizing the Institutional Arrangements of Urban Village Redevelopment : Case Studies in Guangzhou, China

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Original languageEnglish
Article number3376
Journal / PublicationSustainability
Issue number12
Online published18 Jun 2019
Publication statusPublished - Jun 2019



Given the increasing scarcity of urban land, the Chinese government has been initiating large-scale redevelopment of urban villages that are commonly regarded problematic for their low land use efficiencies and negative externalities. During this process, the emerging neo-urbanism in China demonstrates the heterogeneity of institutional arrangements, with different levels of transaction costs incurred. To explore the transaction costs incurred in different institutional arrangements of urban village redevelopment projects, this study anatomizes three projects in Guangzhou from the perspective of neo-institutional economics. The project duration and level of conflict are taken as two key variables to evaluate the efficiency and equality of the projects. With this research design, this study illustrates that institutional arrangements significantly affect the project outcomes. The conclusion suggests that the local and central governments alter the existing institutions with a view to lowering the transaction costs.

Research Area(s)

  • urban villages, urban sprawl, institutional arrangements, transaction costs, social conflict, urban renewal, empowerment

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