The Land Policy Of Macro-control Study Of Performance

This paper focuses on three questions: (1) For what reasons, can government use land policies to regulate macro-economy? (2) How do land policies affect economic fluctuations in short-run or economic growth in long-run? (3) How can we build a more perfect macro-regulation system for land policies?In chapter 1 and 2, we reviewed the theory of land-rent, land economics, regulation theories about land, developments in China's land institution and land markets. Recently, China faces internal overheated economy and external pressure on appreciation of RMB at the same time. This complexion will result in the conflict between internal balance targets and external balance targets, and the government needs land policies as a new regulation tool. China's dual-track land institution and land market make it impossible to finish the progress in which agriculture land changes into construction land by market mechanism itself. The progress that will certainly be guided by government makes a condition for us using land policies to regulate macro-economy.Chapter 3 and chapter 4 are most important parts of the paper. In chapter 3, we studied the linkage between construction land's expansion and economic fluctuations. Within a transition economy, China's investment is still decided by supply shortage to a certain extent. As a scarce resource, construction land which supply is strictly controlled by government offers ground and space for investment, so it will be one of the most important economic factors to restrict investment. China's dual-track land institution and land market strengthen the restriction. With a modified flexible accelerator investment model and panel data of China's provinces from 1999 to 2005, we tested the linkage and get the positive result. The result gives support to China's government using land policies to regulate growth rate of investment and to smooth economic fluctuations. In chapter 4, we studied the linkage between construction land's expansion and economic growth. Construction land contributes to economic growth indirectly through investment and capital stock. Simultaneously, construction land's expansion affects quantity and quality of investment that both decide its final contribution to economic growth. China's nowadays construction land's expansion has enhanced quantity of capital stock, but it also has reduced output efficiency of capital stock. There are four reasons: (1) Construction land's expansion makes investment overmuch in quantity; (2) The investment focuses more resources on building rather than on machine, that can't fit the technical progress; (3) Industrialization and urbanization choose external expansion instead of internal development, that can't make full use of agglomeration advantage; (4) Lower price policy controlled by government reduces the efficiency of land market. With a modified model based on sources of growth methodology and panel data of China's provinces from 1999 to 2005, we tested the linkage between construction land's expansion and economic growth in China. We found that nowadays construction land's expansion makes little contribution to economic growth in fact. If the supply of new construction land is doubled per annum, it can only enhance economic growth rate 0.05 per cent. So, more strict land regulation policies will not certainly reduce economic growth rate, and it is a necessary step to transform the way of economic growth and achieve sustainable economic development.In chapter 5, we reviewed China's land regulation policies from 2002 year-end, effects of this regulation and reasons to reduce efficiency of land policies. Some advice was given to perfect China's Land Regulation System in chapter 6.