Land development for nonagricultural uses in China's periurban areas has been driven by the rapid urbanization which has made the areas an intense mixture of urban and rural activities. The taking of land-rent differentials derived from land-use change is also a strong driving force for land conversion. In addition to formal land developments, informal and quasi-formal land developments have been induced by the institution of incomplete and ambiguously delineated collective land rights which facilitate disordered land-rent competition. Urban land uses permeate extensively into the agricultural territory of villages. Spatially uncoordinated land conversion and disorganized physical development result in substandard, inferior, and deteriorating habitations. Land utilization becomes suboptimal, and land values depreciate in a worsening environment. Land rents dissipate as a result. This mode of periurbanization is deemed unsustainable for a low-income developing country with high population density and scarce land resources.
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