Study On The Effects Of Land Market Running On Economic Growth

It is important for the economic growth that optimizing land resources allocation, because of the foundational effects of land on socioeconomic development. In particular, the effects of urban land market running on economic growth will strengthen increasingly, along with the improvement of socialist market economic system with Chinese characteristics and realization of resources allocation through market mechanism. How to guide land market to run effectively and promote regional economic growth sustainable? By all appearances, it is a valuable research issue. The hinge to solve this issue is to understand the action mechanism and effects of land market running on economic growth.So far, many studies on China's urban land market running and development have been conducted. In those studies, most of them focused on the efficiency and effect analysis of the land market running. It is undeniable that the introduction of market mechanism for land resources allocation promoted socioeconomic development, besides improving land use efficiency. The researches studied not only the mechanism and performance of land market development as a whole, but also the effects of land market running on economic growth from different research angles. Even so, it is necessary to indicate that land market running have many impacts on the run of economy system. Studies on the relationship between land market running and economic growth should not be confined to one special aspect, but have to be expanded from its internal structure and development characteristics. The aims of this thesis are to explore the mechanism that how does urban land market running have the impact on economic growth through changing factors' input and allocation, based on the theory of economic growth.According to the facts that China's land market system including two aspects, such as land primary market and secondary market, and considering the character of these two land markets' running, this thesis firstly builds an analytical framework about effects of land market running on economic growth, based on the analysis of the functions of land and land market on economic growth. It is necessary for the choice of analytical angle, scope and logical structure of next positive studies.Then, in the thesis, reviewed the course of China's land market development, and analyzed the relationship between land market running and economic growth with recent statistical data. As a whole, the development of China's urban land market is characterized as a gradual reform: Firstly, land use without pay, then pay some fees, and now land use through lease system. During this reform process, the relationship between land market running and economic growth become more and more obvious, and present a significant positive correlation. First, from the whole development of land market, there is a significant positive correlation between land market running and economic growth. Second, from the internal structure of land market running, it is different for the correlations of land primary market and secondary market running. Third, from the regional characteristics of land market running, the regional differences of correlations of land market running and economic growth are also significant.In order to explore the function mechanism of land market running on economic growth, this thesis examines the impact of land primary market running, land secondary market running, and land marketization on economic growth, based on the above analytical framework, and puts forward some research hypotheses, including: (1) It is obviously that land primary market running will accelerate economic growth, and the more large-scale land market is, the more rapid economy grows; (2) It is obviously that land secondary market will promote economic growth, and the more large-scale land market is, the more rapid economy grows; (3) It is obviously that land marketization will accelerate economic growth, and the more high-level land market is, the more rapid economy grows. Therefore, the econometric model based on a classical Cobb-Douglas production function is applied by adding some variables reflecting land primary market and secondary market running and land marketization to test the above hypotheses using the data collected from statistical yearbooks. Main conclusions are put forward as follows:(1) The analysis of effects of land primary market running on economic growth reveals that the direct effect of land primary market running on economic growth is to increase construction land in China during transition, because of the intervention of government and supply increase through farmland conversion in land primary market. Moreover, the increase of construction land will drive labors' flow in different section, especially promote rural labor transfer and increase off-farm employment. On the other hand, China's budgetary revenue and expenditure, and residents' saving and investment will also change, along with the farmland conversion and construction land increase, to promote investment in fixed assets and capital accumulation. All of these are necessary for economic growth.(2) The analysis of effects of land secondary market running on economic growth shows that land secondary market running is in favor of the substitution of more-efficient land use for less-efficient, and optimize land use structure and promote industrial structure adjustment, because of the dominant position of market mechanism in land allocation, which lies on the diversification of main bodies and dealing forms in land secondary market. Moreover, the allocation of labor and capital will also change along with the industrial structure optimization. In a word, land secondary market will promote the accumulation of land, labor and capital to more-efficient industries, and be in favor of the economic growth.(3) The analysis of effects of land marketization on economic growth shows that it is different for the function mechanism to land primary and secondary market. Along with the increase of land marketization level, land market mechanism will promote land users to utilize land more efficient and economical, input more labors and capitals on land, and increase land use efficiency. It is obvious that the increase of these factors' input efficiency will drive China's economic growth.In the end, based on the above results of studies, the thesis puts forward policy suggestions for the improvement of China's land market development and sustainable growth of economy, including: (1) Improving land market system and building a mechanism linking land primary market and secondary market. (2) Controlling the scale of land primary market development and supervising the behaviors of governments on land supply. (3) Reforming land requisition system and promoting reasonable allocation of land benefit and effective transfer of rural labors. (4) Improving the supply structure of land primary market and leading healthy behaviors of investment. (5) Improving the correlative institutions and service system and promoting the development of land secondary market. (6) Optimizing the internal structure of secondary market and promoting the effective allocation of economic factors. (7) Increasing the proportion of land exchanges through market system and improving the competitive mechanism of land market. (8) Showing the real value of land and promoting the concentrated and effective input of economic factors.