| Construction land is the basis of human- beings' non-agricultural economic activities, and it is also one of the important economic production factors in the secondary and tertiary industry. Since China implemented its reform and opening-up policies, the course of urbanization and industrialization of the country has been accelerated, the scale of construction land has been expanded rapidly, and a large amount of land for cultivation and other uses has been occupied. However, the low efficiency of utilization and spatial allocation has lead to the great waste of construction land and excessive loss of arable land resources. This essay attempts to explore the optimization of spatial allocation of construction land from the perspective of its efficiency, in order to improve the efficiency of spatial allocation of land for construction. While keeping the total construction land scale unchanged, and then we optimize the spatial allocation of construction land to bring the national total economic output to the maximum levels, in order to ensure the healthy and sustainable development of economy in China as well as effective protection of land for cultivation and other uses, so as to fulfill intensive use of land resources. Therefore, that research on the efficiency of spatial allocation of construction land has important theoretical and practical significance.First of all, based on the analysis of marginal equilibrium, this paper argues that the spatial allocative efficiency of construction land can be optimized when the spatial allocation of construction land meets the requirements of the spatial equilibrium of marginal benefit. Subsequently, we set up an analytical model for the spatial allocative efficiency of construction land and our empirical study reveals that there exist huge spatial differences in marginal production of construction land in China and that the current spatial allocation mode in China shows great efficiency loss, and leaves much room for improvement despite the gradual increase in efficiency. Finally, this paper presents the regional coordination system and implementation strategies for spatial allocation of construction land in China. The main research contents and results are as follows:(1) With the Pareto efficiency as a criterion and the law of diminishing marginal return as the analytical tools, the spatial allocation of construction land can achieve its optimization and the total economic output can be maximization in China when its marginal benefit reaches spatial equilibrium. So the spatial allocation of construction land should be arranged according to its marginal benefit from high to low in regions.(2) Based on the Solow growth model, we established a standard neoclassical growth model with introducing land as a factor. The model predicts that economy would reach a steady state. When the economy is in the steady state, if growth rate of construction land is greater than the growth rate of labor, the greater the output elasticity of construction land is, and the higher the rate of economic growth becomes; if growth rate of construction land is less than the growth rate of labor, the greater the output elasticity of construction land is, but the lower rate of economic growth becomes. Therefore, weakening the dependence of economic growth on the expansion of construction land is of benefit to the sustainable development of Chinese economy in the long run.(3) Clearing the content and difference between physical capital stock and land, we reconstructed and tested the physical capital stock data of the secondary and tertiary industries and the construction land data of 31 Provinces in China from 1985 to 2005. Then, on the base of the augmented Cobb-Douglas production function model, we estimated the specific production function of 31 provinces and municipalities in China by using the panel data model. Econometric estimate results indicate that the output elasticity of construction land in China achieves the statistic significance and the economic growth model that introduces the land factor gives more reasonable economic explanations.There are significant spatial variations in the output elasticity of construction land in China. The output elasticity of construction land has no defined correspondence with the economical development level, and the areas whose economy enjoys higher development level necessarily need no more construction land to maintain its economic growth. In terms of the economic growth, the contribution rate of construction land is generally not high. On average from 1985 to 2005, the maximum contribution rate is 12.19% (Hunan Province) while most provinces' contribution rates are below 4%. Construction land in Hunan, Beijing, Inner Mongolia, Tianjin and Chongqing tend to show great contribution to economic growth. In contrast, construction land in Hubei, Jiangxi, Henan, Jilin, Jiangsu, Shandong, Guangdong, Guangxi, Hainan, Gansu, Shaanxi and Xinjiang reveal the lowest contribution rates (even less than 2%) to economic growth. The marginal productivities of construction land are higher in the following provinces, autonomous regions, and municipalities:Shanghai, Beijing, Tianjin, Fujian, Chongqing, Hebei, and Liaoning. In those areas, the marginal productivity of construction land is higher than the equilibrium marginal productivity. But the marginal productivities of construction land in Hainan, Guizhou, Yunnan, Xizang, Qinghai, Shaanxi, Gansu, Ningxia and Xinjiang are all lower than the equilibrium marginal productivity. From the perspective of the total national economic output maximization, the area with a higher marginal productivity of construction land should be arranged more incremental construction land, neither the area with a higher level or faster grow speed of economy nor the areas with a great contribution rate of construction land to economic growth.(4) The connotation of the spatial allocative efficiency of construction land was clearly defined. Subsequently, the index of spatial allocative efficiency and measurement method of efficiency loss were proposed for the construction land spatial allocation. And then, the empirical study was conducted for the construction land spatial allocation in 1985-2005. The results showed that:the spatial allocative efficiency of the construction land in China was steadily improving, and the index of spatial allocative efficiency was rising from 0.8712 in 1985 to 0.9151 in 2005; however, the economic loss caused by the efficiency loss of construction land spatial allocation was increased, from 77.77 billion Yuan RMB in 1985 to 533.50 billion Yuan RMB in 2005. The efficiency loss of construction land spatial allocation is rooted in the quota system that the central government distributes incremental construction land without the spatial equilibrium of marginal benefit of construction land.(5) It is estimated that the economic loss caused by the spatial allocation of construction land in China by the master planning of the national land use would amount to 977.45 billion Yuan RMB in 2010. To optimize the spatial allocation of construction land, the mechanism of spatial transfer and reasonable compensation of construction land in region was proposed in this paper.First, we accounted for the deviation of the optimal allocation scale of land for construction and the planning quota of 31 provinces in 2010, in order to determine the scale and the flow direction of the transfer of construction land;Then, according to the pricing mechanism based on marginal returns to the transfer indicators of construction land the amount of financial compensation was calculated, and the "recovery of lost efficiency" to share in various regions was determined by regional contributive share in the "recovery of lost efficiency".Finally, we proposed three implementation strategies to bring about the transfer of construction land in China. First, construction land quotas granted by land use planning with the permission of quotas transfer through market mechanism; Second, construction land quotas granted by land use planning with quotas transfer paid between different regions by a special department of the central government; Third, the model of tender is used for the transferable quotas.
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