Abstract
This paper analyzes market efficiency under the formal transaction rules of the rural collective construction land (RCCL) market in Nanhai District. These transaction rules are not perfect, market uncertainty is strong, and transaction costs remain high. Transaction rules are an important means by which the government can intervene in the market, protect farmers’ land-use and income rights, and make the market more open, equitable, and just. Using a field survey (260 questionnaires) in Nanhai District, Guangdong Province, China, we estimated the impact of the openness, equity, and justice of transaction rules on the transaction costs of the RCCL market. Tobit models were constructed, and the results showed the following: (1) The overall level of market efficiency of the RCCL in Nanhai District is low. In different regions, the highest market efficiency is in Guicheng Street and the lowest is in Xiqiao Town. However, after excluding the influence of environmental and random factors, the overall level of market efficiency decreased, while the market efficiency of Lishui and Xiqiao Town increased. (2) The influencing factors of RCCL market efficiency under the arrangement of transaction rules are mainly related to the disclosure of information in the openness dimension, income distribution and supervision in the fairness dimension, and land-price formation in the fairness dimension. Therefore, we suggest that the lower the transaction cost of an RCCL market, the more active the market will be. It is very important to improve the transaction rules of the RCCL market, reduce the transaction cost, and improve the market efficiency. The transaction rules of the RCCL market should be further improved in the three dimensions of openness, equity, and justice. Our work provides insight into the improvement of market efficiency, which contributes to the development of the RCCL markets in other areas of China and worldwide.
Highlights
Many traditional systems hinder economic and social development, resulting in low market efficiency
We interviewed most villages in Nanhai District which participated in the rural collective construction land transfer, and conducted in-depth interviews with village cadres and villagers who participated in RCCL transfers
A three-stage data envelopment analysis (DEA) model excludes the impact of capital specificity, external environmental factors, and random errors in the evaluation results, and can obtain a “purer” efficiency value reflecting the operational efficiency of the RCCL market [30,31,32,33,34,35]
Summary
Many traditional systems hinder economic and social development, resulting in low market efficiency. In the process of applying economic efficiency in collective public institutional decision-making, policy procedures and adopted systems are judged by transaction cost with regard to whether the main decision-makers bear all the costs of the action and benefit from it [6]. If there are incentives and constraints, political markets are formulated in the best way If this is not the case, the externality of decisions will rise, which will lead to the failure of choice [11,12,13]. The influence of social rules on the interests of decision-makers is very important, because the cost expended in the execution of rules affects market efficiency. The implementation of transaction rules in a rural collective construction land market affects the transaction cost of rural shareholding cooperatives
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