Research On Chinese Rural Housing Land System Of New Institutional Economics Perspective

Rural homestead, as a unique concept in China, which content has been evolvingfor over the past few decades, forms the present homestead institutional arrangements.Namely it is that the rural collective economic organization owns homesteadproprietorship and farmers only have the right to use the homestead. Under theconditions of the planned economy system which the heavy industry had the prioritydevelopment, such institutional arrangements in the past had played a positive role.With the recent changes in our country’s economic development, the state explicitlyproposed to raise the income level of farmers in rural areas. But because the stateexpressly prohibited homestead from free flow, rural homestead cannot achieve thegoal of increasing the income of farmers, which causes the emergence of a largenumber of idle rural homestead and very large number of homestead circulationphenomenon in the economically developed rural and urban-rural areas. Therefore,homestead system reform is to achieve the objective requirements of comprehensivedevelopment of society.Through research integrated theory with practice this paper uses a uniquemethod-New Institutional Economics of research method to analyze our country’srural homestead system. This paper firstly introduces the relevant theories which areused including the property rights theory, the institutional change theory, the gametheory and the institutional innovation and contract theory. Secondly it points out thespecific arrangements for the current regulations, and reveals the problems in thepresent rural homestead system. Thirdly it uses this new system of economic theoryto analyze existent problems of the rural homestead system and cause of these problems. Finally, it takes specific measures to resolve the existing problems, whichbroadens the reform path of the rural homestead.