Study On Transaction Cost Of Rural-Urban Land Conversion

Rural-urban land conversion is the inevitable phenomena when a national develop from agricultural society to industrial modernization and social. China has entered into the accelerated development stage, in the next fifty or sixty years, rural-urban land conversion will continue to play a very important role in urbanization, industrialization process. At the same time, it also brings us a lot of questions which influence the economic and social development. Now the institutions of rural-urban land conversion has not related to the current economic development level, it is showing the defect of the system, mainly: rural-urban land conversion can produce great appreciation, but the land increment income is very reasonable; the land compensation standard of land expropriation is low enough to guarantee the farmers' living standard, the interests of farmers are violated; the land market is still not perfect, this is easily caused rent-seeking activities between government and land developers and the loss of national land assets. Based on jiangxia district of hubei province, the paper uses the relevant theory of new institutional economics to analyse these problems and the causes of transaction cost of rural-urban land conversion, this paper discusses how to improve the efficiency of conversion of farmland city, and puts forward policy suggestions. The main content and the conclusions of each chapter are as follows:Chapter 1:Preface. Introduces the backgrounds, the purpose, the significance of the research, research dynamic and review at domestic and overseas and the major research ideas, research contents, research methodology and possible innovations as well.Chapter 2:Study on the theory of transaction cost of rural-urban land conversion. It introduces three important theoretical foundations of the new institutional economics:the theory of transaction cost, the theory of property rights and the theory of institutional change. The study of transaction cost of rural-urban land conversion is about how to settle the efficiency and fairness problem of the allocation of land resources by the new institutional economics theory. Firstly, we must know what is transaction cost, what would produce transaction cost, which method can measure it? Secondly, it elaborats the characteristic of property right and the representative's thoughts and theory in property right economics, the reaseach is about how property right affect transaction cost, how property right influence the economic efficiency. Then it outlines how institutions influence the operation of economic, how the supply and demand decide the institutional change, Lastly, it provides theory basis to reduce transaction cost of rural-urban land conversion.Chapter 3:Research on transaction cost of rural-urban land conversion. Firstly, this chapter defines the concept of rural-urban land conversion, and describes the general process of rural-urban land conversion and the revenue distribution of the stakeholders. The general process of rural-urban land conversions can be divided into three stages:land requisition, land reserve and development, land transfer, and it mainly involves the farmers, the rural collective economic organizations, the developers, the local government and the central government. Then it analyzes transaction cost of each stage how to influence the revenue distribution of the stakeholders. Next, the institutions of rural-urban land conversion including land requisition system, land reserve and development system and land transfer system are summarized. From the perspective of generalized, transaction cost is institutional cost. Under the current institutions, transaction cost includes exogenous transaction cost and endogenous transaction cost, they are different, and the endogenous transaction cost reflects the efficiency of the institutionsand is more important. Then study on transaction cost of rural-urban land conversion under the current institutions, land requisition in invisible market, rural construction land direct conversion, discuss the motivation of institutional change and the direction of institutional reform and provide advice to perfect the institutions of rural-urban land conversion.Chapter 4:The empirical research on measuring transaction cost of rural-urban land conversion. It takes Wuhan jiangxia district as an example and analyses transaction cost of rural-urban land conversion. In order to obtain more real and effective research, it measures external and internal transaction cost of land requisition, land reserve and development and land transfer. At the same time, it analyzes the benefit relationship and revenue distribution between the subjects and reveals that the endogenous transaction cost causes the main problems of revenue distribution. Then it takes Shiyan zhuxi as an example, it analyzes the relationship between transaction cost of land requisition in invisible market and revenue distribution, and find the reason for the existence of the invisible market. Anyhow, the institutions of rural-urban land conversion exists lots of transaction cost, largely influences the efficiency of the allocation of land resources, and also reflects the requirement with institutional change of the rural land property rights.Chapter 5:Conclusion and discussion. It summarizes the primary conclusion, and then puts forward some suggestion to reduce transaction cost to improve efficiency of rural-urban land conversion. At the same time, we discuss some shortage in the thesis, and put forward some issues which need to research profoundly.