Dual Land Market, Urban-rural Income Gap With Urban Structure

Land is both an ancient and new topic. All human activities are inseparable from land, Willam Petty,a classical economist had a famous saying:Land is the mother of wealth, which demonstrated that land is the most important tool of wealth creating in agriculture society. As a new topic, in the process of industrialization and urbanization, the properties and uses of land have undergone great changes. In the process of switch from the simple agriculture to non-agriculture uses, the form and value(differential rent) of land have also changed greatly. People who have learned microeconomics know that, labor,capital and technology are factors in the neo-classical production function, which implies a profound institutional change, with the industrialization and rapid urbanization in the Western developed countries, land has been fully capitalized. In china, the capitalization of land is in the process, which mainly relates to the urban-rural division of land system. Land-related issues are in a joint state, associated with urban and rural. The dual land system has a close relationship with many major economic and social problems in China, specific to problems of rural housing landN social security,"small property room" and compensation for land acquisition, land mortgage and credit issues, the real estate in urban,land finance and debt problems of local financing platform. Moreover, land problem also related to the large raise of farmers'income, the "three rural" issues, curbing the further expansion of urban-rural gap and the expansion of domestic demand, seeking the new driving force for China's economic growth, those significant structural challenges, a deep study and exploration of land-related problems in China is absolutely necessary for the solutions of all above topics."CPC Central Committee's decision of some important issues in the process of rural reform" published in Third Plenary Session of the 17th CPC Central Committee, it is the comprehensive layout to achieving basic objectives of rural reform and development in 2020, in which sopke of" break existing pattern which required that the non-agriculture construction land much become state-owned, granted equal status with state-owned land." This is an important step of getting rid of the dual urban-rural land system, which has profound economic and social background.urban-rural income gap has been expanding from the 1990s, "Three rural" issue is always the most prominent problem in the development process,the fundamental way to slove is to let farmers become citizens.The dual land system is the largest obstacle in the process of urbanization, it implies three meanings:1.farmers are lack of mortgage,sale and trade right of farming and housing land, it would result lack of initial capital to enter into city,plus household registration system,farmers can only "Migrant" flow between urban and rural.2.counstruction land can't allocate inter-provincially,so it led great loss of land's productivity across the country, it also exacerbated tension of land with growth in eastern coastal areas,which promoted the rising house prices,lack of land indicators put serious constraints on big city's industrial concentration and absorptive capacity of population.3.people can not successfully flow into large cities, industrial clustering ability is constrained by dual land system,can't form a unified national market of elements,which in turn led to the "flat" distribution of city's structure, imbalance state of "lack of large cities, too many medium and small cities",dual land system was the greatest obstacle for formation of large metropolitan urban structure. According to the preceding analysis, this article mainly related to the following three fields:1.The relationship of dual urban-rural division of land markets with the urban-rural income gap and allocation efficiency of construction land.This paper built a general equilibrium framework of two-sector economy, with the numerical simulation technique to simulate effect of dual land market to urban-rural income gap in 1992-2009.In addition,this paper made an empirical estimation by extended Cobb-Douglass production function, then obtained the marginal productivity of construction land of 211 cities in 1999-2007, and with the approach of Theil index decomposition, we got effect of intra-provincial and inter-provincial differences on marginal productivity's gap among 211 cities.2. From the fact that dual land market led to insufficient supply of residential urban land, we analysised the relationship between residential land supply,housing price level and rate of capitalization of local public goods in the framework of Tiebout-Oates model.Futhermore, We empirically investigated effect of residential land price on locating distribution of manufacturing, made some tentative answers about how to change current city structure "lack of large cities, too many medium and small cities" In the context of food and energy security, we demonstrated that city structure must take spatial pattern of Metropolitan style with geographical endowments and choice of governments(central and local) and market.3. Many useful researches about integration of urban and rural land markets have been in the procees, coupled with the facts that previous theoretical and empirical studies just demonstrated or explained which disadvantages the dual land system has and which improvements integration of urban and rural land makets would bring.But it did not involve and relate to analysis of "transitional process" from current urban-rural division tointegration, only on the base of experimental researchs.In fact, many districts have created different "transitional model",the author made relevant research activities in Tianjin,Chongqing, Jiaxing and Cixi of Zhejiang Province, concluded and summarized according to level of urban-rural land market's integration, it combined with previous theoretical studies in order to more fully grasp theme of this paper and reflect significance and value of this research.The main policy suggestions are that dual urban-rural land system must be got rid of as soon as possible, so that collective construction land (including housing land) can enjoy equal treatment as state-owned land in the principle of "the same land, the same right, the same price", which included allowance of collective land directly into construction land's market,the mortgage,transfer and sale right of housing land. It can also play a crucial role at curbing further expansion of income gap between urban and rural areas,sustainable urbanization process,a substantial increase in the efficiency of spatial allocation of land, to optimize city and industry structure,etc.Finally, it needed to be noted that, because Provisions of land system in China regulated that urban land is state-owned,rural land is collectively owned, respectly land system or market segmentation refers to "collective construction land can't directly enter to city market and enjoy the same treatment with state-owned land",land system or market with urban-rural intergration in this paper, unless specified notes, refered to construction land market with urban-rural intergration,not include the rural farmland,beaches,other unused land and all other types of land.