Integration of property and railway development : an institutional economics analysis

This paper applies the theoretical insights of the new institutional economics in examining two alternative mechanisms of implementing the integration of property and railway development: the single-developer approach and the multiple-party approach. The relevance of these mechanisms is reflected in the recent debates concerning the KCRC Canton Road Station, the West Kowloon Cultural District Development and MTRC integrated development approach. This paper argues that a desirable development outcome can be generated when the incentive and constraint structure of the institutional framework is put in place such that the roles, interests and resources of the different parties are properly aligned.