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Governance Structure of Rural Homestead Transfer in China: Government and/or Market?

Author

Listed:
  • Yongchao Zhang

    (Department of Public Management, Nanjing Agriculture University, Nanjing 210095, China
    China Land Problem Research Center, Nanjing 210095, China)

  • André Torre

    (UMR SAD-APT, University Paris-Saclay, INRAE, AgroParisTech, 75005 Paris, France)

  • Marianne Ehrlich

    (UMR SAD-APT, University Paris-Saclay, INRAE, AgroParisTech, 75005 Paris, France)

Abstract

Rapid urbanization in China has triggered the mass migration of rural populations to cities. These policies have resulted in a shortage of construction land for the urban population and in an inefficient use of rural homestead, causing a tremendous waste of rural land resources. Rural homestead transfer has been identified as a tool to solve this problem: the saved construction land can be reclaimed to cultivated land, and the construction rights are transferred to urban areas, where they can be used to build new households for the demanding population. We consider that transaction costs analysis can help understand the governance structures of the homestead processes, and provide avenues for further research and policy recommendations. Our article draws on the practices and experiences gained in three areas in rural China ( Jinzhai , Yiwu , and Jiangning in the Anhui, Zhejiang, and Jiangsu Provinces, China). Based on the empirical cases and information produced from the villages and households survey, we developed an analytical framework of transaction cost. Results suggest that Yiwu has lower assets specificity, lower uncertainty, and transaction frequency, hence the market driven model played a major role. In Jinzhai , which presents higher assets specificity, higher uncertainty, and transaction frequency, the government-oriented model also played a major role. In Jiangning , where most transaction attributes are situated in the middle, the mixed-oriented model acted as a main role in the local area. Our conclusion shows that various governance structures are appropriate for different areas of rural China, which is significantly related to the local transaction attributes. We suggest promoting the governance structure which corresponds to the local resource endowment, human and residential condition, the cultural atmosphere, and also the institutional (official) atmosphere. Matched with the government or/and market governance structure, it may develop the resource allocation efficiency and improve economic performance.

Suggested Citation

  • Yongchao Zhang & André Torre & Marianne Ehrlich, 2021. "Governance Structure of Rural Homestead Transfer in China: Government and/or Market?," Land, MDPI, vol. 10(7), pages 1-17, July.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:7:p:745-:d:595713
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    References listed on IDEAS

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    2. Kong, Xuesong & Liu, Yaolin & Jiang, Ping & Tian, Yasi & Zou, Yafeng, 2018. "A novel framework for rural homestead land transfer under collective ownership in China," Land Use Policy, Elsevier, vol. 78(C), pages 138-146.
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    7. Wu, Yuzhe & Mo, Zhibin & Peng, Yi & Skitmore, Martin, 2018. "Market-driven land nationalization in China: A new system for the capitalization of rural homesteads," Land Use Policy, Elsevier, vol. 70(C), pages 559-569.
    8. repec:dau:papers:123456789/12281 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Yichi Zhang & Kai Xue & Huimin Cao & Yingen Hu, 2023. "The Non-Linear Relationship between the Number of Permanent Residents and the Willingness of Rural Residential Land Transfer: The Threshold Effect of per Capita Net Income," Land, MDPI, vol. 12(8), pages 1-23, August.
    2. Zhang, Yongchao & Torre, André & Ehrlich, Marianne, 2023. "The impact of Chinese government promoted homestead transfer on labor migration and household's well-being: A study in three rural areas," Journal of Asian Economics, Elsevier, vol. 86(C).
    3. Ranran Shi & Ling Hou & Binghui Jia & Yaya Jin & Weiwei Zheng & Xiangdong Wang & Xianhui Hou, 2022. "Effect of Policy Cognition on the Intention of Villagers’ Withdrawal from Rural Homesteads," Land, MDPI, vol. 11(8), pages 1-17, August.
    4. Kangchuan Su & Jiang Wu & Yan Yan & Zhongxun Zhang & Qingyuan Yang, 2022. "The Functional Value Evolution of Rural Homesteads in Different Types of Villages: Evidence from a Chinese Traditional Agricultural Village and Homestay Village," Land, MDPI, vol. 11(6), pages 1-22, June.
    5. Jing Wang & Kai Zhao & Yue Cui & Hui Cao, 2022. "Formal and Informal Institutions in Farmers’ Withdrawal from Rural Homesteads in China: Heterogeneity Analysis Based on the Village Location," Land, MDPI, vol. 11(10), pages 1-19, October.
    6. Weiyan Qi & Zhemin Li & Changbin Yin, 2022. "Response Mechanism of Farmers’ Livelihood Capital to the Compensation for Rural Homestead Withdrawal—Empirical Evidence from Xuzhou City, China," Land, MDPI, vol. 11(12), pages 1-18, November.
    7. Lingling Li & Qianyu Dong & Changjian Li, 2023. "Research on Realization Mechanism of Land Value-Added Benefit Distribution Justice in Rural Homestead Disputes in China—Based on the Perspective of Judicial Governance," Land, MDPI, vol. 12(7), pages 1-28, June.
    8. Xianjun Wang & Junfang Kang, 2023. "Decision Making and Influencing Factors in Withdrawal of Rural Residential Land-Use Rights in Suzhou, Anhui Province, China," Land, MDPI, vol. 12(2), pages 1-20, February.

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