Analysis of the Theory of Share Tenancy and Variable Rural Land Resource Allocation

Reasonable allocation and utilization of rural land resource are determined by five traits of rural land. According to the relationship between the system of rural land ownership right and the trading expense,Cheung Steven N. S., concluded in Theory of Share Tenancy that fixed rent , share contract and wage contract might be efficient contract disposition on condition of zero trading cost. Different contracts may result in different resource allocation efficiency if the trading cost is positive. The writer of this paper draws a conclusion accordingly that the prerequisites for reasonable allocation of land resource lies in clarification of ownership and demotion of trading cost for rural land allocation and, a variety of ownerships will promote the making of pluralized pattern of rural land resource allocation in socialist market economy in China.