The Economic Analysis Of Changes And Innovatory Direction Of Chinese Farmland Institution

"Pleasant, agriculture and countryside" have a effect on the whole national economic growth and development. Therefore we should attach importance to the solution of these three problems. Of course we ought to solve these problems in various aspects, one of which is the innovation in farmland institution. In this paper I attempt to answer these problems through the innovation in farmland institution. According to mis, the paper contains five parts to analyse them. In the first part I demonstrate the importance of study on the farmland institution in China. Institutional changes and innovation is indispensable to the economic development of a country. Only when the institutional supply is suitable to the institutional demand, can the economic development be stable and in high velocity. In other words, only the institutional equilibrium can make it possible to develop economy. By the same token, Pleasant, agriculture and countryside are both imperative and important. The source and approach of these problems is closely related to the farmland institution. That whether the farmland institution is equilibrium or not is the key of the solution of these three problems. The second part of this paper looks back the changes of farmer institution in China since October in 1949 .During less than 60 years, three great farmland institution took place in China : "the land reforai", "the collectivization" and "the household responsibility system" .During the collectivization there were important changes of farmland institution. And the household responsibility system has been improved for several times. In the process of innovation, the land system of ownership of feudal landlord had been changed into the land system of ownership of the farmer. Then the land system of ownership of the farmer turned into the land system ofownership of the collective. In the third part of the paper I study theeconomic results of each change of farmland institution and undertake theinstitutional analysis. The institutional school of thought always think thatthe institutional arrangement always shift from the equilibrium to thedisequilibrium. In other words, the equilibrium is temporary, but thedisequilibrium is common phenomenon. The emergence of thedisequilibrium may imply the institutional change and innovation. Weregard the change of farmer institution since 1949 as the change frominstitutional equilibrium to institutional disequilibrium. Irrespective ofinduced change or imposed change, the underlying profit ofdisequilibrium of farmland institution is the essential motivation of thechange of farmland institution. With the underlying profit that resultedfrom reform decrease, the household responsibility system has showeddisequilibrium in recent years. So in the fourth part of this paper, Ianalyse the important problems existing in the current farmlandinstitution of China: for example, small-scale of administration; theproblems of right of ownership in the farmland; inadequacy in landadministration; farmers' ability to accumulate funds is limited. In the fifthpart of the paper, I come up with solution: under the condition of keepingthe land system of ownership of the collective, we establish moderatescale's and new farmland shareholding cooperative system step by step .1think that this kind of farmland institution is a way to increase farmers'income and to resolve these three problems.