Land Policies And Economic Growth

To find the relationship between land policies and economic growth, we analyzed China's current land policies, and developed the new-classical growth model with land input, optimization growth model with land input and endogenous growth model with land input. We focused on the factor character of land and brought forward new analysis methods on the relationship between land and economic growth.We developed a model to define the acts of government and land speculators, and found that if the government can anticipate the change of land market, the land peculator will suffer loss. We also developed ILS-LM to analyze the conjunct effects of fiscal policies, monetary policies and land policies on economy, we draw the conclusion that the land policies of controlling land supply functions the same to fiscal policies.This paper introduced the abstract of efficient land into the production function. The results of new-classical growth model with land input implied higher growth rate of land use technology and lower output elasticity of land will bring higher growth rate on the Balanced Growth Path. The results of optimization growth model with land input based on the RCK Model implied that when the economy convergences to one point in a saddle-shaped path, at this point the capital per capita and the consumption per capita will be unchanged, and higher efficient land input per capita will bring higher capital per capita and higher consumption per capita at that point.The endogenous growth model with land factor implied that the growth rate of steady state is positively related with land use technology growth rate and negatively related with the output elasticity of land. When we assumed that the time of individuals for production, research and study can be smoothly transform with each other, we find a surprised conclusion that the growth rate is unrelated with the economic structure and it is only related with the initials of the individuals.On the basis of the conclusions, we suggested that the government must focus on the change of land market and draw the land policies based on the right anticipation. The governments should advocate using land in an intense way and reduce the land dependence of the economy. That would be good at rapid and sustainable growth.