Choice of Rural Collective Construction Land Sales and Rental Markets at the Theoretical Framework of Williamson’s Transaction Costs: Evidence from Nanhai District, Guangdong Province, China

The rural collective construction land (RCCL) market imperfections, as well informal regulations, may have contributed to high transaction costs. Well-functioning markets play an essential role in land-use revenue, efficiency, and allocation efficiency for the economic organization (RCEO). Therefore, specific patterns detailed rules rental sales market, respectively, make a contribution suitable model with lower costs higher efficiency. Through empirical investigation Nanhai District, Gungdong Province, this article builds on theoretical framework of Williamson’s costs, where asset specificity, uncertainty, frequency significant influence RCCL choice. Probit results show that (1) RCEO prefers choose when has specificity so can counteract by creating revenue long-term investments. Thus, is more appropriate choice trading large area great location. (2) uncertainty. detail markets, respectively. We propose local governments need announce regulations longest contract period development planning (floor ratio, building density, floor height, etc.) different types (industrial commercial land) market.