Government Regulation In The Process Of Rural Land Marketization

Land serves as one of the prerequisite for human beings survival and one of the most important means of production. Land system, taken as not only the most important institutional arrangement in agriculture sector but also the foundation for social economic system, has been playing an important role in social development. For China, a country with a big agriculture sector, rural land system is the foundation for the economic system as well as headstone for social structure in the rural area in terms of politics, economy and culture. With regard to China history, land has been the core of"san nong"issues. Reforms resulting in transformation in productivity and relations of production, such as land reform, agriculture co-operation and rural people's communes, are attributed to rural land system transition. The three transitions of the rural land system, especially household contractual management, have imposed significant impacts on the institutions. The problems arising in the economic development in the rural area, mostly result from land issue.Government, an organization with greatest advantages during the period of social transition, plays a large part in the social advances and break of equilibrium. In fact the reform on rural land system is just the transition of government dominated mechanism. The government dominated model, promoting the marketization at the beginning of the reform, has become an obstacle in the economic development. The marketization process is hinder by the offside, absence and failure of the government's function. On the other hand, the externality of land with the characteristics of"pre-public goods"leads to failure in land distribution and land utilization."Market failure"and"government failure"taking place in the market of rural land, restricts the improvement in productivity in agriculture sector.Based on theories concerning mechanism transition, property rights and government regulation, this paper aims reallocation of land resources in different section in the process of industrialization and urbanization. It focuses study on the transition in land system and transaction mechanism, operation situation and existing disadvantages with respect to resource allocation mechanism and enquity definition. It gives a picture of the history of rural land reform in China, makes an analysis of typical cases in the highly developed economy area of Zhejiang province. It forms the research pattern of"study, rectification, innovation"on the basis of western nations'theories and practice regarding marketization of rural land and government's intervention on rural land market. It discloses the rules of transition in property rights systems, especially in rural land systems and the situation, characteristics and tendency in the marketization of rural land. It makes a study of factors hampering the marketizaiton and establishes the model for market operation. It points out the function of the government in the process of rural land marketization as well as the importance of mechanism and supply mechanism. It puts forward suggestions on improving rural land system, strengthening the rural land transferring mechanism, regulating the rural land market operation and enhancing legal support for rural land market. This paper is expected to be of greater significance and attract more attention from related departments regarding issues discussed here. The views concerning"market-oriented government"and"service-oriented government"gives instructions for study and innovation. The frame regarding government regulation at macro and mid-macro level provides reliable basis for information analysis and decision making. The suggestions on typical cases offers a model for other regions. The innovations is that cost-benefit analytical framework and market agent game matrix will be applied to research on marketization of arable land as new analytical instruments. The thoughts on capitalization and securitization of rural land develops a new field for research on rural land marketization.