Pattern Of Difference Sequence,Government Guidance And Price Distortions Of The Rural Land Market

Accelerating cultivating new agricultural management system,guiding rural land transfer,and promoting appropriate scale management of agriculture are important measures to realize the efficient and sustainable use of rural land resources.Agricultural land transfer is a process of re allocation of agricultural production elements,which is compatible with the agricultural modernization and the level of market allocation,In recent years,the circulation of rural land in China has shown a trend of sustainable development.However,a noteworthy phenomenon is that,although after years of development,the transfer of rural land market is still mainly concentrated in the social relations deployed within the group,and showed a generally low transaction price,trading characteristics of general personification.Compared with the original intention of the transfer of rural land,rural land transfer based on human relationship is contrary to the standardization and marketization of rural land transfer,and it is difficult to create a rural land factor allocation market.based on price and market mechanism.For this reason,this paper focuses on the farmland transfer between the network of acquaintances in less developed areas,which may lead to inferences and empirical facts of farmland prices distortion.On this basis,this paper use "pattern of difference sequence" to describe the local social relations,and define transaction's "pattern of difference sequence”phenomenon which appears in the process of farmland transfer.Then,the farmland transfer market is further divided into "relational market" and "elemental market",to shape a theoretical framework of "pattern of difference sequence-government guidance-farmland prices distortion".On theoretical level,this paper expounds the internal mechanism of the distortion of farmland transfer price caused by the difference order pattern between farmers and circulation objects,and government as the main body of the third party,to discuss the situational dependence of farmland transfer price distortion in further.Then,this paper puts forward the relevant hypothesis.On empirical evidence,This paper describes the characteristics of the "pattern of difference sequence" of the agricultural land transfer in the three provinces and the overall distribution of the agricultural land transfer price under different government guidance by using the survey data of 2538 households investigated in Guanyun and Jinhu,Fengcheng,and Suichuan,Donggang and Sujiatun in August 2014 and February to August 2015.Then,use the C-D production function to calculate the shadow rent of farmland transfer,and get the degree of distortion of farmland transfer rent.At the same time,the OLS model is used to estimate the impact of the personification transaction and the third party implementation on the rent distortion.The main conclusions are as follows:1.The closer the relationship between the farmers and the transaction object,the more likely to have a relatively low turnover rent,and the greater degree of distortion of farmland transaction price.On the one hand,the closer the social relationship means the higher the degree of the embedded social trust,which is beneficial to the substitution of social capital to the currency capital,and to avoid the risk of information asymmetry.On the other hand,the informal transaction based on social relations can reduce the transaction costs during the three stages of farmland transfer.In other words,farmers can get some non-monetary benefits,which makes it easier to accept a lower transfer rent.But,this will result in the failure of the market price signals,which contrary to the principle of marginal productivity of factors,and thus distort the price of agricultural land transfer.2.For different types of farmers,the relationship between the difference order pattern and its effect on farmland transfer price is consistent,but there is a certain heterogeneity in the effect size.In particular,compared with the transfer-in households,the positive effect on transfer-out households' land transfer rent distortion caused by pattern of difference sequence is more obvious.Because the transfer-out households pay more attention to human relations in agricultural land transfer,and for the land itself is a property of the personification of the property,the transaction is often transforming between assets and social security,which offers transfer-out households hidden assets,such as community security.But for transfer-in households,they are often taking economic benefits as the transaction target,and "human debt" may be higher then high transfer costs.So,their land transaction price distortion degree is relatively low.3.Government intervention in agricultural land circulation can reduce the distortion of farmland transfer price.The government can intervene in agricultural land transfer as the third party by providing some services,such as reducing information asymmetry and default risk,building rural land transfer guiding platform,et.al.,which can replace the function of human relation network in the rural land transfer market and rectify the rent distortion on human market.It can promote the transformation from "relationship market"to "factor market",drive the standardized development of the whole rural land transfer market.Moreover,for different types of farmers,the influence of the government's guidance on the agricultural land transfer are basically the same.4.Finally,this paper puts forward the policy reference from four aspects:reducing the dependence of the rural factor allocation on "pattern of difference sequence" network,establishing formation mechanism of farmland transfer price,optimizing transaction environment of rural land,and clearing the boundary between government and land market.The main measures is,weakening the dependence of farmers on human relation's function of reducing the transaction costs during rural land transfer through providing service system which agricultural land transfer market required.Resulted to shift transfer objects to periphery of "pattern of difference sequence",making land transactions more diversified and more competitive.In the end,the value of land transaction will be manifest and the efficiency of land resource allocation will be improved.