A Study On The Land Market Development And Management In China During The Economic Transition Period

Efficient allocation of land resources through a well-functioning land market is a necessary requirement for a socialist market economy. Enhancing the land market management and normalizing the activities in it do not only help ease the severe problem of land scarcity and maximize the social and economic benefits with limited land resources in China, but also contribute to the success of the state-owned enterprise reform, speed up the process of industrialization and urbanization, achieve sustainable economic and social development and maintain social stability.Based on a comprehensive review of the current literature on land market development and regulation, this dissertation investigates the structure, system and approaches of the land market development and management in China during the particular period of transforming from a centrally planned economy to a market one, in accordance with the general law of market development and operation mechanism. Meanwhile, it also identifies problems associated with China's current land property right regime, proposes new forms of land property rights and clearly defines entities in the land market, according to the special characteristics of the public ownership of land and the direction of land use system reform. It emphasizes the necessity and importance of deregulating collectively-owned land market and raises the recommendation of developing China's land market characterized by "two forms of property rights, single market, fair competition and balanced development".In addition to studying the establishment of a land market system, this dissertation also analyzes major problems associated with current land market operation in China, and proposes methods and approaches to solve these problems. After comparing different land supply mechanisms, it is suggested that the current assignment approach should be replaced by a land lease system with open competition mechanism. Based on the current situation in China, it is argued that land planning should be strengthened rather than weakened in a market economy. It should be used to control and guide the land demand. Because a market failure may exist, it is necessary to establish a pre-cautionary mechanism about the land market in order to improve government's capability of regulating the land market. When a market failure occurs, the government should collect and analyze the land market data, identify the causes of the failure and find a proper way to intervene. Finally, the impacts of intervening should be evaluated.Along with the development of the market economy, the land market in China willevolve from a resource market through an asset market to a capital market. Land capital is the core of a land market. This dissertation provides some projections of the development and management of future land capital market in China.Land is publicly owned in China and trade in land does not mean changing land ownership. As a result, the land market is an imperfect market of property rights. The state and collective economic groups, as land owners, control the land supply and dominate in the land market. The trading activities of land use are determined to a large degree by land owners. Land supply and demand also display cyclical patterns because the period of land lease is limited. Land market operation differs in different time within a cycle and between cycles. Therefore different management approaches should be applied accordingly. How to manage the land market in different time and different places is a focal point of this dissertation.In addition to being the owner and operator of state-owned land, currently the government is also the regulator of all types of land. This arrangement should be changed. The government at every level should act only as a regulator of the land market, rather than a trader or an operator of land assets in the market. Otherwise, a "fair and transparent" land market can not be established.The essence of a market economy is rule by law. Every trading and regulating activity in the land market should abide...