A Comparative Study of Land Economy under Different Ownerships in China

5月 24, 2017

Zhou Yan (周炎), Chen Kunting (陈昆亭) and Lei Xintu (雷新途)

College of Economics and Management, Zhejiang University of Technology, Hangzhou, China

Abstract: This paper creates a land economy model under the framework of the

consistent growth theory to investigate the impacts of different forms of ownership on long-

term economic equilibrium. As demonstrated under the model, in an economy of private

ownership that allows the free transfer of land, land gradually becomes concentrated in the

hands of a few; income growth deriving from technological progress merely contributes to

the wealth and consumption of landowners; landless workers will struggle at the level of

subsistence. An economy of public or collective ownership that forbids the transfer of land

can ensure basic social equity. However, in a collective economy without a contract system,

population is likely to grow excessively and thus requires external restraint. The conclusions

of our model suggest that the long-term welfare and growth effect under collective

ownership with a contract system is superior to those under private ownership and pure

public ownership.

Keywords: ownership structure, long-term growth, land economy model

JEL Classiﬁcation Code: E02, P26, P21, P14