The Study On China's Land Transfer Market

Land is the most basic means of agricultural production; the land has a significant effect on agricultural production and rural development. Since the implementation of reform and opening policy, China's economy has made tremendous progress and economic structure has changed from a planned economy to a market economy. The Household Contract Responsibility System (HCRS) and two-tier management system combining unified and separate operation have become the basic economic institution in rural China. However, the Household Contract Responsibility System encountered some problems in the process of implementation. With the development of non-agricultural economic and the different needs of farmers, an induced institutional change emerged gradually in China, resolving the problems of the Household Contract Responsibility System (HCRS) to a certain extent. In this paper, the author analyses the determinants and effects of the transferring of rural land contracting and management rights with the paradigm of New Institutional Economics. After that, interaction between the determinants of land transfer is pointed out and the problems of the land transfer are analyzed. Finally, this paper presents policy recommendations.