Analysis Of Price Distortion In The Transfer Of Rural Collective Construction Land

As an important part of rural collective land, rural collective construction land is playing a crucial role in China’s economic development. In the recent years, with the development of industrialization and urbanization, the demand for rural collective construction land has been increasing consistently. With the development of rural economy, it is assumed that collective construction land will eventually enter the land market. Henceforth, collective construction land will become an important component in construction land market in the future. The evaluation of collective construction land is therefore a principal concern in the study of collective construction land circulation as well as other relevant studies.With the expansion of circulation scale of collective construction land, there is a widespread distortion in the circulation price of the collective construction land, which blunders the optimization of land allocation. So it is very important to carry out this study not only in theory but also in practice. Supported by the program on collective construction land circulation in Yixin, Jiangsu Province, we mainly discussed about the reasons leading to distortion in collective construction land price by making a comprehensive analysis based on economic theory. The dissertation is organized as follows:The first part explores the circulation of collective construction land and existing problems in its evaluation. It summarizes collective construction land circulation in our country in recent years and the problems. Meanwhile, it explains the reason why such phenomenon occurs. By introducing the development, existence and problems of collective construction land, it analyses the formation collective construction land price and factors involved in the process.The second part establishes a theoretical analysis framework on the distortion in collective construction land circulation price. Based on the theory of price distortion, this dissertation examines why collective construction land circulation price were distorted and concludes that the dereliction of duty of government and market is essential to distortion. At the same time, it introduces the concept of collective-construction-land-circulation-price-distortion rate and tries to identify it in quantitative aspect.The third part is a case study of Yixing. Firstly, it makes an overview on the implementation of collective construction land circulation policy in Yixing, Wuxi city and elaborates on its experience, achievements and problems. It then calculates the collective-construction-land-circulation-price-distortion rate on town scale and explains its reason. After the estimation, we find that there is a heavy distortion in the collective construction land circulation price in Yixing, presenting an average of over 200 yuan per square meter. The average distortion rate of collective construction land circulation price in Yixing exceeds 70%. Specifically, distortion rate Ⅰ caused by the gap between the rights of collective construction land and state-owned construction land is 10.88%. Distortion rate II caused by over governance is 89.12% on average. Meanwhile, the distortion rate differs in difference region. Generally, those areas with good location and strong economy has a higher rate than those less developed. It shows that the more developed the land market is, the severer the distortion in collective construction land circulation price will be. Distortion rate Ⅱ alters in consistence with the overall distortion rate while distortion rate 1 changes the other way round. This shows that the more developed the area is, the more distortion is caused by over governance, and the less is caused by rights gap.The forth part gives suggestions on the correction of price distortion. Under the guidance of relevant objectives and principals, the suggestions are given in three aspects:the capitalization of collective construction land use right; the establishment of a market that involves both rural and urban construction land transaction; and improvement of the evaluation system of collective construction land circulation.