Study On Mechanism Of Intensive Land Use On The Base Of Land Marketization

Since 1978, China benefits much from the reform and opening-up policy. The level of industrialization and urbanization has progressed remarkably with rapid economy development. At the same time, the rapid economic increase has lead to much demand on the constructive land. Under the condition of market economy, different efficiency of land allocation in different industry sections will influence land allocation. While in fact, the value of use in rural land is lower than that in constructive land. So, much land is converted from rural land to constructive land. Rapid economic increase leads to city extension. At the same time, the use of much constructive land in city is coarse. The situation of constructive land extension with low-efficiency use in existed land makes the restriction of land on economy development more serious. Furthermore, with the rapid development of economy in China, the demand on land would be more. So, if we cannot change the way of land use, try other ways to increase the efficiency of land use, we would impropriate more rural land, and the relationship of land and people would be more tension. It is hard to implement the sustainable development. Take the development zones as an example is because development zones are the typical area where the use of land is coarse, and also, the development zones are the important base to carry out system innovation. So, it is valuable on theory and reality to study on the mechanism in intensive land use in development zones.Coarse use of land virtually is low-efficiency of land resource. Market is the basic and efficiency way to allocate resource. While, China is at the stage of transferring from a center controlled economy to a market oriented economy. At this stage, the degree of market is low, and the efficiency of market mechanism is also low. Market failure exists in land allocation. While at the same time, due to the incorrect understanding of government function, the behavior of government in land market is improper. And so, the impertinent government behavior deteriorates the "market failure", and lead to much lower efficiency of land allocation. So, it is necessary to study the way to reach the high-efficiency of land allocation and intensive land use on the base of understanding market mechanism thoroughly.In the first part of the paper, the research background, theoretical concepts and research contents, analysis structure, research methods, and sources of data used are introduced. The research on intensive land use and market mechanism on resource allocation in China and abroad are reviewed and commented also.Many factors affect the level of intensive land use. On the base of analyzing the factors, such as population, economy, technology and policy system, the paper tries to build a frame work to analysis the mechanism of intensive land use. According to the research, the increase of quantity and quality in population is good to induce the level of intensity; While, low quality of population increase will cumber the intensity of land use. The increase of economy, industrialization and urbanization will increase the press of land, and so induce the land use more intensive. The advancement of technology is the technical safeguard to increase the land use intensive. Also, government regulation and construct of land market will influence the efficiency of land use. Using the frame work to analysis the factors that influence the intensive land use in China, the paper finds the increase of population and economy, the development of industrialization and urbanization, and the regulation of government is good to lead to intensive land use. Furthermore, the degree of land market is the key factor that would influence the intensive use of land in China.Land market degree is the key and fundamental factor that influence the intensive of land use, so the paper build an analysis framework to analysis the relation of market and the intensive land use under the perfect market and imperfect market respectively.Analysis on the mechanism of intensive land use under the ideal market indicates that market mechanism is the main way to allocate resource in perfect land market. Land price, land supply and demand is the signal mechanism to increase the level of land use intensive; benefit of land use is the drive mechanism; and compete in land use is the press mechanism. Moreover, with the corporate of market mechanism and government proper regulation, the allocation of resource can reach "Pareto optimum". And so, the efficiency of land allocation is the best and the land use is intensive.As for the land market in the development zones in China, compare to the mature land market, the market in the development zones is immature. For example, the system of market is distempered, the behavior of market actors is nonstandard; the order of market is faultiness and the effect of market mechanism cannot work well. And so, the mechanism of price, supply and demand, competition and benefit allocation are distorted in some extend.â‘ land price is not generated by the change of land supply and demand in land market. The system of leader appointment and the rational government is the precondition in the form of lower land price. And the non-cooperate of local government is the main way for the form of lower land price. The study on the relationship of land price and intensive land use, means that lower land price would lead the more coarse use of land.â‘¡The relationship of land supply and demand is confusion. The research means that the particularity of land supply and demand is it is hard to induce market mechanism in industry land on the one hand. And on the other hand, because of government interference in land supply, the supply of land is larger than the demand. So, land would be over-expropriate, and also the phenomena of coarse and low-efficiency use in land is inevitably.â‘¢The mechanism of compete is distorted. The relationship of the competition of land use and the intensive land use is changeable. It has three stages. And in different stage, the relationship is different. As for the market in development zones, the competition mechanism cannot induce intensive land use. Because local government has control the land supply in the first land market stage. And in order to attract more foreign factories to invest, local government take many measures to supply too much land in very low price, which lead the land market become a buying-oriented market structure. The excess competition in land supply and the deficient competition in land demand will lead to coarse use in land inevitably.â‘£The benefit allocation mechanism is illogical. Actors in development zones in China are central and local government, government in development zone, and enterprises. Different actor has different aim function, and which decides the choice of their behavior. The paper thinks it is the rational choice for local government to set up as many development zones as they can, because after the reform of tax system, local government has less finance right, while has to bear more public affair. In order to have more capital to do public affair, the local government tries to set up more development zones to attract foreign fund to get enough capital to implement their function. Meanwhile, local government has more right to control the resource is also an important aspect.In transition, the failure of land market leads to the low efficiency of land allocation. And, because of the improper behavior of government, the efficiency of land allocation and use is very low in development zones.On the base of the theory analysis, the paper studies the mechanism of market to intensive land use in development zones in Jiangsu province by economic model. By the method of SEM, the paper studies the relativity of market degree and intensive land use; by multi-factors analysis model, the paper analysis the change of driving factors in intensive land use in different land market stage. The demonstration indicates that market degree has positive affect on the intensive land use. In different marketization stage, the effect part of government and market is different. At the low stage, government is the main power to allocate land resource (when the threshold of land use increase 1%,the degree of intensive land use will upgrade 0.371%) and leads to coarse use of land. While, at the higher stage, market is more important to allocate land (when the degree of land market increase 1%, the degree of intensive land use will upgrade 0.447%) and will improve the efficiency of land allocate and land use. As for our country that is at the stage of transition, the intensity of land use is higher with the increase of land market degree. And the paper also indicates that in different market stage, the effect of land market on the intensive land use is different. The degree of intensive land use will increase 0.255 percent with the degree of land market increase 1 percent in middle of transition, while the ratio will change to 0.447 percent in the end of transition. At the same time, the quantity of land use is different, in the middle of transition ,the quantity of land will save 2.24 percent; while in the end of transition, that will be 3.87 percent.Finally, base on above study, the paper thinks market is the main and efficient way to allocate resource, while because of market failure in China, the efficiency of land allocate and use is low. So it is important to transfer the mechanism of land management, innovating land market, and make the market become the main mechanism to allocate land resource. And so, some valuable policy recommendations about increasing the intensity of land use are presented.