China 's Land Circulation And Economic Development

Land resources play an important role on economic growth and the property rights directly affects the efficiency of allocation of land resources in the economic activities. This paper will analyze from the perspective of property rights through the establishment of property rights model the relations between land property rights and economic development. The result shows that the economic output can be increased by improving the property rights of land which is a key factor of production, the economic output will also be increased by improving the mortgage rights of land which acts as an asset, however, the scope of its affection is limited; In some cases, the requirements of justice and efficiency are hard to reconcile. The protection of property rights may affect the trading of property rights instead and even harm the economic efficiency. From this perspective, the greatest difficulty China’s reform of land system faced may not be the incompleteness of property rights, but the distortion of the market expectations and behaviors of all parties concerned caused by government behaviors. Therefore, this article proposed that the government should stay out of the land market, and let the land resources be allocated by the market.