DOI: 10.17026/dans-zfq-jcfb
title: The Impact of the Reform of Collective Construction Land Market-entry on the Economic Benefit of Construction Land —— Empirical Investigation Based on the Micro Data of Changzhou

description: Since 1988, when the revised Land Administration Law of the PRC removed the restrictions on transfer of state-owned land access, China had consummated State-owned construction land market by proposing laws or regulations in 20 years later, aiming to perfect the trading system, which brought a huge boost in urban land value and increased per-unit land utilization benefit. However, the circulation of collective construction land use right was still blank in laws and regulations, leading to the absence of independent property transaction subject and complete property rights, which was in a state of spontaneous and sporadic transaction. This not only hindered the improvement of collective construction land value, but also highlighted the problems such as low efficiency of land resource allocation, inadequate land use and unreasonable development in the process of collective construction land utilization and development. To solve these problems, in 2015, the Chinese government published The opinions on the reform of rural land expropriation, collective construction land market-entry and homestead system, which marked the kickoff to the reform of collective construction land market-entry.Thus, what impact does the reform of collective construction land market-entry have on the economic efficiency of construction land? What is the influence mechanism behind it? The answers to these questions can not only explain the impact of market entry reform on the economic benefit of construction land in theory, but also provide some policy suggestions for local governments to better guarantee the policy effect and promote the full circulation of collective construction land use right in the land market in practice.The existing researches on the reform of collective construction land market-entry mostly focus on the entry path pattern, risk prevention and income distribution. A few studies focusing on the effect of market-entry reform are mostly from the perspective of farmers' income and rural development, hardly any studies directly on the impact of market-entry reform on the economic benefit of construction land. In view of this, this paper firstly analyzes the influence mechanism between the reform of collective construction land marketentry and the economic benefit of construction land by property rights theory, resource allocation theory and externality theory. Secondly, as Changzhou city was selected as the research area, macro-micro data such as Changzhou Statistical Yearbook from 2016 to 2021 and Jiangsu Industrial enterprise land use database are used to construct DID models to empirically analyze the impact of the reform of collective construction land market-entry on the economic benefit of construction land. In order to enrich the argument, this paper selectedtwo actual cases of Wujin district in Changzhou to further verify the influence mechanism.The results are as follows :(1) Compared with that of state-owned construction land, the economic benefit of collective construction land is lower. Before the market-entry reform, according to the theory of property right, the unsafety, unclearness and instability of collective construction land property right place restriction on its transfer in the land market, making the collective construction land unable to truly share the same rights with state-owned construction land, leading to a low motivation and a weak investment intention of market participants. Therefore, economic benefit of collective construction land cannot be fully improved. (2) The reform of collective construction land market-entry improves the economic benefit of collective construction land. Firstly, by granting equal rights to collective and state-owned construction land through legislation, the market-entry reform can effectively clarify the property rights of collective construction land, improve the expectations of market participants, and encourage land users to increase their investment in land. Secondly, the market-entry reform can give full play to the resource allocation function of the land market, make the collective construction land and the state-owned construction land enjoy the same right of financing guarantee. Thus enterprises can mortgage the utilization right of collective construction land obtain financing, which can alleviate the pressure of the enterprise funds, and improve the economic benefit of the land. Moreover, the transaction of collective profit-making construction land in the land market can effectively reduce the waiting time of both sides of the transaction, improve the transaction efficiency, reduce the transaction cost, reduce the unnecessary economic loss in the transaction, and thusimprove their economic efficiency of construction land. (3) The reform of collective construction land market-entry promotes the economic benefit of state-owned construction land. With the proposal of market-entry reform, local governments continue to increase their investment in infrastructure construction, and accelerate the development and utilization of collective construction land, so that the rural economy can rapidly develop in high-quality, and the rural industrial structure can be upgraded. Moreover, the economic development of rural areas can produce certain positive externalities to the economic benefit of surrounding state-owned construction land, so that the benefit can be improved to a certain extent. Based on the research results above, this paper puts forward following suggestions: (1) In theory, future research can explore the impact of The reform of collective construction land market-entry on the economic benefit of land, and further verify the impact path of property rights security effect, market allocation effect and externality effect. (2) In practice, primarily, it is necessary to fully empower the property rights of collective construction land; Next, government should improve relevant supporting polices on collective construction land market-entry.