Transition from human governance to law governance in institutions of rural China : from the viewpoints of economics and law

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Institutions of rural China, especially farmland tenure system are analyzed from the viewpoints of economics and law, and the following results are obtained.(1) The contracted management right has been revised to encourage farmers to invest more, by expanding the scope of residual claims.(2) Partial compensation under eminent domain certifies the entitlement of the contracted management right. This measure restrains excessive investment and expropriation by farmers and the government respectively.(3) In the case of the Hunan province, the farmers perceived the establishment of land property rights to be a precursor to the liquidation of their farmland.(4) However, not only law governance but also human governance play important roles in land tenure system.