Competitions Among Local Governments And China Land Market Development

Land is one of the fundamental production elements of the development of the national economy and it plays an important role that no other thing can substitute in the national economy. But during kinds of market establishment, land market is one of the best fundamental and worst development speed market at all. There are many factors what can induce the slowly development of land market, although, the paper just wants to find out the reasons through the aspect of "Competitions among Local Governments".After fiscal decentralization in 1994, local governments compete with each other for their own interest, such phenomenon can be found only in China exclusively. Just as many scholars have proved that such competition has promoted the development of china's economy. But if we have effective restrict measures, such competition will show its negative effect. For example if the land ownership is not clear, the local government competition will hinder the development of land element market.The article will use theories of Institutional Economics and the game theory to analysis how the local government interfere and impact the land markets development in Competitions among Local Governments condition.