Abstract

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Title:: Fallacies of Lifting Restrictions on the Transfer of Collectively-owned Land for Construction Purpose

Keywords:: collectively-owned land for construction purpose; dual structure of land system; land value increment; urbanization; mechanism of income distribution

Abstract:: Most of the current studies on issues concerning collectively-owned land for construction purpose have come to the conclusion that it is advisable to allow free transfer of collective land for construction purpose and the creation of a unified urban and rural land market will be instrumental in solving the current land problems. Such an idea is wrapped in a moral discourse of acknowledging farmers’ inalienable rights over their land and their equal rights to enjoying the economic fruits, but it is based on a fallacious and illogical analysis, which makes the policy solutions it supports go against the objectives it expects the reform to fulfill. In the light of this contradiction, we argue that to allow the free transfer of collective land for construction purpose cannot help solve the current land problems, solutions to which can only be found within the framework of China’s urbanization and the mechanism of adjusting income distribution.