Intermediary Role of Provincial Governments

Abstract

This chapter examines the role of provincial governments in the urban housing sector of China. Evidence from Shandong and Shanxi provinces is used to analyze the influence of the provincial institutions of leadership , legislation , land use, and living culture in the allocation, construction, and distribution of commercial and affordable urban houses. The evidence shows that provincial governments , as the intermediary, play an increasingly important role in coordinating policy initiation and implementation by the central and municipal governments , respectively. The central government provides the broad guidelines with institutional space for municipal and county governments to adapt and implement policies according to local socioeconomics conditions. The provincial governments intermediate the coordination in the formulation and implementation of policies by the central, municipal, and county governments, respectively.