Urban Village Redevelopment in China: Conflict Formation and Management from a Neo-Institutional Economics Perspective

Urbanisation is the key to China's modernisation. Extensive urban village redevelopment projects (UVRPs) have recently been implemented in China, with the expectation of generating positive socioeconomic and environmental effects. However, social instability has resulted from conflicts over land and informal settlements. In this study, we investigate the factors influencing conflict levels during the UVRP process. Based on data collected from 439 projects in seven Chinese cities, ordered logit regression reveals that UVRPs with a top-down rather than a bottom-up institutional arrangement are more likely to have violent conflicts. Projects implemented with a bottom-up and villager-funded approach involve lower levels of conflict than those with a bottom-up and private developer-funded approach. Other determinants, including factors related to policies, time, and space along with project specificity, also influence the conflict level during the redevelopment process. These empirical results can inform government approaches to policymaking, thus enabling more positive outcomes for both governments and affected villagers.