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Economic Study on Agriculture Land System and Efficiency of Circulation in Anti-commons Theory Perspective

Author: LiTong
Tutor: LuoWeiDong
School: Zhejiang University
Course: Political Economics
Keywords: Tragedy of the Anti-commons Circulation of Agricultural Land System ofAgricultural Land
CLC: F321.1
Type: Master's thesis
Year: 2014
Downloads: 13
Quote: 0
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Abstract


Since the establishment of the People’s Republic of China, the system of Chinese agricultural land has undergone a transformation from private ownership to collective ownership with previous reforms. Thanks to the system characteristics and incentive properties, the household contract responsibility system greatly promoted the development of agriculture in our country, since it was formally established in1984. But with the rapid development of Chinese economy, the adaptability of the household contract responsibility system to the present economic structure adjustment and agricultural development has been generally questioned."Tragedy of anti-commons" as a theoretical model proposed by American economists Professor Heller, refers to when multiple owners are each endowed with the right to a scarce resource and no one has full rights individually, the resource is prone to underuse. This paper analyzed the circulation problem of agricultural land in China through the dissecting of rights structure on the household contract responsibility system and the establishment and calculation of the related model directed by the research paradigm of the tragedy of the anti-commons. In conclusion, China’s household contract responsibility made right division led to the "tragedy of anti commons" situation, affecting the size and income level of agricultural land circulation. The reason of this result is due to the right segmentation improves the negotiation cost of the agricultural land transfer, making the expected revenue of both the supply and demand sides decline, from two aspects of scale and income level limits the efficiency of agricultural land transfer. The situation limits the efficiency of agricultural land transfer in aspects of scale and income level.The Third Plenary Session of the18th Central Committee of the Communist made a comprehensive plan to deepen rural reform, emphasizing that the nature of property right of agricultural land management right. A variety of innovative circulation modes, such as management right mortgage loans, land management rights transfer trust and so on appeared in reality. This paper explained the direction of a new round of agricultural land system reform and separately analyzed several innovation mechanisms of agricultural land circulation. The new round reform of agricultural land system will separate management rights from the original right structure, as a separate property rights recognized and entering the market. To a certain extent, the separation improved the efficiency of agricultural land circulation in the situation of the right segmentation.

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CLC: > Economic > Agricultural economy > China 's agricultural economy > Rural economic structure and institutional > Land issues
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