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Abstract

This paper firstly summed up institutional change of land circulation after the foundation of new China, analyzed main characteristics and internal drawbacks of government-oriented land circulation, discussed the governance cost of local government-oriented land circulation, and evaluated the governance performance on the basis of the transaction cost theory. Results show that local government-oriented land circulation is a resource allocation mode for maximizing benefits of an organization, and its microscopic functions and values are mainly encouragement and restriction, while its macroscopic functions are comprehensive administration of results of state policies. Finally, it put forward policy suggestions for improving local government-oriented land circulation: cultivating diversified rural land circulation modes and regulating acts of local officials; stressing that building harmonious land circulation mechanism is the responsibility of central government; setting up recognition mechanism of the public to local government.

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