scholarly journals Choice of Rural Collective Construction Land Sales and Rental Markets at the Theoretical Framework of Williamson’s Transaction Costs: Evidence from Nanhai District, Guangdong Province, China

2021 ◽  
Vol 13 (15) ◽  
pp. 8473
Author(s):  
Ting Zhang ◽  
Ke Huang ◽  
Anlu Zhang
Keyword(s):  
Land Use ◽  
Transaction Costs ◽  
Theoretical Framework ◽  
Asset Specificity ◽  
Market Model ◽  
Construction Land ◽  
Rental Market ◽  
Land Rental ◽  
Rental Markets ◽  
Collective Construction

The rural collective construction land (RCCL) market imperfections, as well as informal regulations, may have contributed to high transaction costs. Well-functioning land markets play an essential role in land-use revenue, land-use efficiency, and land allocation efficiency for the rural collective economic organization (RCEO). Therefore, specific land-use patterns and detailed transaction rules for the land rental market and land sales market, respectively, make a contribution to a suitable market model with lower transaction costs and higher market efficiency. Through an empirical investigation in Nanhai District, Gungdong Province, this article builds on the theoretical framework of Williamson’s transaction costs, where the asset specificity, uncertainty, and transaction frequency have a significant influence on the RCCL market model choice. Probit model results show that (1) the RCEO prefers to choose the land sales market when the RCCL market has higher asset specificity so that the land sales market can counteract transaction costs by creating land revenue for long-term investments. Thus, the land sales market is a more appropriate choice when the trading land is a large area in a great location. (2) The rental market choice is more suitable for the RCCL market with higher transaction uncertainty. Therefore, the RCEO can detail transaction rules for the land sales and rental markets, respectively. We propose that local governments need to announce regulations for the longest contract period and the land development planning (floor area ratio, building density, floor height, etc.) of different land-use types (industrial land and commercial land) for the land sales market and the land rental market.

scholarly journals Effect of Transaction Rules on Enterprise Transaction Costs Based on Williamson Transaction Cost Theory in Nanhai, China

2020 ◽  
Vol 12 (3) ◽  
pp. 1129
Author(s):  
Meie Deng ◽  
Anlu Zhang
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Land Tenure ◽  
Three Dimensions ◽  
Construction Land ◽  
Transaction Efficiency ◽  
Supervision Mode ◽  
Collective Construction Land ◽  
The Government ◽  
Collective Construction

The high transaction costs due to the incomplete information and transaction rules of the rural collective construction land (RCCL) market indicate that the government must improve the rural collective construction land market. Transaction rules are an important means for the government to intervene in the market and promote the development of market order, to secure land tenure, and to improve the disclosure of information. Vertical integration may reduce enterprise transaction costs but will increase the governance cost of internal organizations in enterprises. Land commercialization and corporate governance restructuring is a considerable challenge worldwide. Using a field survey in Nanhai district, Guangdong province, China, we estimated how the transaction costs of the RCCL are influenced not only by three dimensions of transaction rules—openness, equity, and justice—but also by the human asset in EC or EJC. Tobit models were constructed, and the results show that (1) the greater number of collective leaders, the higher the enterprise transaction cost (human asset in EC or EJC increases transaction costs of enterprises) and (2) the transaction rules are not sufficiently open or fair, which leads to high costs of market information searching, opportunism, and corruption. The transaction information is not transparent and the lag in transaction supervision mode gives rise to unfair transactions, in which the formation mode of land price is unreasonable. Therefore, we suggest that the transaction rules of RCCL market should be further improved in the three dimensions of openness, equity, and justice. Chinese authorities should strengthen their current efforts to build a more open and fair market by reducing the transaction costs of enterprises and improving the transaction efficiency. Our work provides some insights into the improvement of market efficiency which will contribute to the development of the RCCL market in other areas of China and worldwide.

Drivers of household entry and intensity in land rental market in rural China: evidence from North Henan Province

2016 ◽  
Vol 8 (2) ◽  
Author(s):  
Xiaohuan Yan ◽  
XUEXI HUO
Keyword(s):  
Labor Markets ◽  
Land Tenure ◽  
Design Methodology ◽  
Rural China ◽  
Henan Province ◽  
Rural Land ◽  
Rental Market ◽  
Land Rental ◽  
Rental Markets ◽  
Land Rental Markets

Purpose Economic reforms in rural China have led to the emergence of land and labor markets. The development of rural land rental markets can improve agricultural productivity and equity by facilitating transfers of land to more productive farmers and facilitating the participation in the non-farm economy of less productive farmers. In contrast to the burgeoning development of off-farm labor markets, the development of rural land rental market has lagged. The purpose of this study is to analyze the factors affecting households’ entry and transaction intensity in rural land rental markets, especially the effects of land tenure and off-farm employment. Design/methodology/approach Based on a field survey data of 479 household in Henan Province in 2009, the authors used Cragg’s double hurdle model to identify the determinants for households’ land rental participation and its transaction amount. Findings Off-farm employment is one of main driving factor for household’s land rent-out decision. Tenure insecurity reduces both the propensity and the magnitude of rental market transactions. Land use certificates significantly contribute to participation in land-rental markets and the rental amount. Originality/value This paper treats household land rental market participation as a related two-step process, focusing on both land transfer and its transaction amount. This paper also builds on a broad view, including analysis on both demand and supply side of land rental market.

scholarly journals Development of Land Rental Markets in Rural Zhejiang: Growth of Off-farm Jobs and Institution Building

2004 ◽  
Vol 180 ◽  
pp. 1031-1049 ◽  
Author(s):  
Qian Forrest Zhang ◽  
Ma Qingguo ◽  
Xu Xu
Keyword(s):  
Market Development ◽  
Institution Building ◽  
Household Level ◽  
Rental Market ◽  
Land Rental ◽  
Local Institution ◽  
Development Institutions ◽  
Development Trajectory ◽  
Rental Markets ◽  
Land Rental Markets

We employ survey data collected in 2001 in Zhejiang province to investigate patterns and determinants of land market development. Previous studies have noted the correlation between growth of off-farm jobs and rental-market development at the aggregate level, but failed empirically to demonstrate mechanisms at the disaggregate level. Our analyses find concrete evidence at the household level connecting developments in labour and land markets. Growth in off-farm jobs allow rural households to transfer labour out of farming and prompt them to relinquish land rights, generating a supply of land that drives rental activities. We also go beyond interactions between factor markets and examine how local institution building promotes rental-market development. Institutions that either lower transaction costs or secure property rights are found to be crucial in explaining cross-regional variations in rental-market development. Finally, the rise of land rental markets also highlights the role of collective ownership in shaping rural development trajectory.

Study on the Defects of General Plan for Land Use and Relevant Land System in China

2012 ◽  
Vol 518-523 ◽  
pp. 6030-6033 ◽  
Author(s):  
Cong Xia Zhao ◽  
Peng Guang Zhou
Keyword(s):  
Land Use ◽  
Urban Land ◽  
Urban Land Use ◽  
Land Uses ◽  
Construction Land ◽  
Land System ◽  
General Plan ◽  
Land Circulation ◽  
Land Requisition ◽  
Collective Construction

Since the middle of 1980s, urban land in our country has expanded rapidly. One of the important reasons is defects in the general plan for land use and the relevant system. This paper analyzes the defects in the general plans for land uses, the land requisition system, the assigning system and the collective construction land circulation in our country, and then includes an illustration that consummating the relevant land system is the key to govern urban land use.

scholarly journals What Affects Participation in the Farmland Rental Market in Rural China? Evidence from CHARLS

2019 ◽  
Vol 11 (24) ◽  
pp. 7021
Author(s):  
Yahui Wang
Keyword(s):  
Transaction Costs ◽  
Agricultural Development ◽  
Rural China ◽  
Supply And Demand ◽  
Land Consolidation ◽  
Rental Market ◽  
Land Transfer ◽  
Land Rental ◽  
Land Titling ◽  
The Government

Land fragmentation and the small size of land parcels are still the major bottlenecks for agriculture sustainable development in rural China, and an efficient land rental market could consolidate land plots and realize agricultural management at a moderate scale. However, transaction cost is still the main obstacle of land transfer. It is, therefore, essential to reduce the excessive transaction costs in the process of transfer; the primary task is to identify the roots of transaction costs. In order to accurately identify the sources of transaction costs, a generalized ordered Logit model with thresholds that allowed transaction costs to affect different directions of land transfer was developed using the China Health and Retirement Longitudinal Survey in 2015. The results suggested that the roots of transaction costs presented significant differences regarding the supply and demand of cropland. For the supply of land, the land titling program, land transfer intermediaries, and well-planned roads were the three most important factors that reduced transaction costs. For the demand of land, the three critical measures for reducing the transaction costs were well-planned roads, land consolidation, and the land titling program. The government should continue to push forward the land titling program and land consolidation projects in rural China, especially in hilly and mountainous areas. The infrastructure that greatly restricted agricultural development should be improved at a moderate level and the system of land circulating intermediary services at the township level should be established.

scholarly journals Increasing cooperation and reducing competition to reduce transaction costs

Impact ◽  
2021 ◽  
Vol 2021 (2) ◽  
pp. 68-69
Author(s):  
Tatsuo Koda
Keyword(s):  
Transaction Costs ◽  
Supply And Demand ◽  
Theoretical Framework ◽  
Asset Specificity ◽  
Neoclassical Economics ◽  
Individual Behaviour ◽  
A Priority ◽  
Japanese Companies ◽  
Basic Level

Neoclassical economics outlines the way in which production, pricing and consumption are driven by supply and demand. However, it is more complicated than that. Professor Tatsuo Koda, who has vast experience with corporations, and is based at Bunkyo University, Japan, is interested in how individual behaviour can shed new light on organisational and corporate activities. He is exploring the intersection between cooperation and competitiveness with a view to demonstrating the importance of cooperation and positive corporate behaviour. Specifically, he is exploring the factors that affect transaction costs, which on a basic level means how much it costs to purchase something, and believes that companies could benefit from increasing cooperation and reducing competition as this is a way to reduce transaction costs, benefiting each party involved in a transaction. Koda has developed a theoretical framework that posits that building a trusting relationship is the prime measure for reducing transaction costs and, comparatively, contract-based exchanges lead to higher transaction costs. Ultimately, Koda is setting out to analyse the discordant relationships found within and between organisations from the viewpoint of cooperation in order to put forward solutions. He has already found that asset specificity heightens transaction costs for both contract-based exchanges and cooperative exchanges and, next, he will be interviewing organisations and individuals within corporations in order to identify other conditions that have the effect of increasing transaction costs. In the long term, this research could contribute to a priority shift in Japanese companies and accentuate cooperation within Japan and across borders.

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