Since the rural reform of family responsibility system of 1978 in China mainland, the state persisted in assigning safer and stable farm land property rights to rural families to encourage free transaction of farm land use rights which favored effective and sustainable land use. For the efforts of rural collectives, objectives of the state was not fulfilled ideally. Therefore contracted land registration system was introduced to complete the redistribution of farm land property rights more directly. Registration of contracted land rights would boost farm families entrance into land market theoretically through protection of families legal farm rights, restriction of rural collectives interference and cutting down transaction costs. Statistic from Nantong municipality proves that farm land transaction is more prevalence where more rural families receive certificate of contracted land rights.
Finance and Economics