Through privatization

the management and construction of Public Rental Housing in China

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Abstract

Recently, a process of privatization is underway in the Public Rental Housing (PRH) provision in China. In this context, the government has contracted out management services to private enterprises, promoted inclusionary zoninga policy instrument that requires or encourages private developers to provide a certain percentage of PRH as part of commercial housing projects-instead of massive government construction of large-scale PRH projects, and stimulated a complex range of partnerships with non-governmental organizations. However, how to understand the behavior of non-governmental sectors subject to different incentives and how to motivate them to participate in PRH governance remain largely unstudied. To answer these questions, this paper develops a theoretical framework based on the principal-agent theory. To test the framework, empirical data collected in two Chinese cities, Chongqing and Fuzhou has been analyzed. Some policy implications are put forward in the conclusion part in order to generate more creative uses of non-governmental resources in Chinese PRH governance.

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