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Unraveling the Institutional Logic in China: an Examination of the Institutional Logic Behind Separation of Ownership, Contract Rights, and Operational Rights

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  • Yuanfeng Liu

    (Hunan Agricultural University)

  • Xinyuan He

    (Hunan Agricultural University)

Abstract

The separation of ownership, contract rights, and operation rights within China’s land rights system marks a pivotal juncture in the nation’s agricultural and rural development. This research paper delves into the intricate dimensions of this transformation, emphasizing policy interpretations, legal aspects, and challenges in policy implementation. The study underscores the gap between policy intent and practical implementation, highlighting the complexities inherent in this separation of rights. Grounded in the principles of new institutional economics, the paper explores two central themes: the multifaceted nature of agricultural land, which serves both economic and social roles, and the historical evolution of the “disposition separately of three rights” concept aimed at optimizing land resource allocation. Normative standards rooted in new institutional economics provide a framework to evaluate the current land rights system, revealing issues in ownership, contract, and operation rights. The findings carry significant theoretical implications, shedding light on the complexities of land rights transformation and the growing importance of agricultural land's economic function. From a policy perspective, the research emphasizes the need for a balanced system that optimizes land use, supports collective and individual interests, and fosters economic growth in rural areas while protecting farmers’ rights. These insights provide valuable guidance for managers and policymakers involved in crafting and implementing land reform policies in China.

Suggested Citation

  • Yuanfeng Liu & Xinyuan He, 2024. "Unraveling the Institutional Logic in China: an Examination of the Institutional Logic Behind Separation of Ownership, Contract Rights, and Operational Rights," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13509-13531, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01670-6
    DOI: 10.1007/s13132-023-01670-6
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