The Marketization of Rural Collective Construction Land in Northeastern China: The Mechanism Exploration

Abstract

The transfer of rural collective construction land into the market (RCCL marketization) is an important starting point for breaking the urban–rural dual system, realizing the sustainable use of land resources and promoting the integrated development of urban and rural areas in China. This study aims to explore the decision-making of rural households in the marketization of rural collective construction land (RCCL) by constructing a two-stage (cognition-decision) theoretical framework. Based on the household survey data collected from the pilot areas in the three northeastern provinces in China, the structural equation modelling (SEM) has been applied. The main findings are as follows: (1) the four types of exogenous latent variables, including information dissemination, management of collective economic organizations (CEOs), family characteristics, and household head characteristics, are intermediary by household cognition, which then positively affect households’ behavior and decision-making. (2) among the factors affecting household cognition, the management of CEOs exhibits the most significant impact, followed by information dissemination, family characteristics, and household head characteristics. (3) the measurable variables, including participation rights, whether there are collective operating assets, education level, and whether members have social insurance, have significant effects on the four exogenous latent variables. (4) the understanding of income distribution policy has the greatest positive impact on household cognition, while risk perception has the opposite effect, indicating an obvious “risk aversion” tendency for rural households. The findings imply that the government should improve the existing RCCL market entry system from the aspects of strengthening collective economic organization construction, land value-added income sharing mechanism, and clarifying rural land property rights, so as to reduce farmers’ decision-making risks and enhance value perception. Overall, the research presented here contributes to investigating the theoretical mechanism of household decision-making and providing empirical evidence on how to improve the marketization of rural collective construction land in China.