Che, Yi (2009): Mismatch: land reallocations, recovery land rental and land rental market development in rural China.
Download (375kB) | Preview
Drawing upon a unique farm survey in 2003, I find that in rural China, Full-scale Land Reallocation (FLR) are more likely to follow egalitarian rule and Partial-scale Land Reallocation (PLR) take productivity of households into consideration. Econometric evidences shows two main results. First, FLR have positive effect on household land rental behavior, possibly because egalitarian FLR create a mismatch between household agricultural ability and land size and after FLR households has to participate in land rental market to adjust the mismatch. Second, PLR have negative effect on household land rental behavior which supports that land reallocation and land rental market are substitutes (Brandt, Rozelle and Turner, 2004).
|Item Type:||MPRA Paper|
|Original Title:||Mismatch: land reallocations, recovery land rental and land rental market development in rural China|
|Keywords:||Mismatch; Egalitarian; Recovery Land Rental; Full-scale Land Reallocation; Partial-scale Land Reallocation|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products
|Depositing User:||Yi Che|
|Date Deposited:||03. Jul 2012 12:52|
|Last Modified:||04. May 2015 21:09|
Angrist, Joshua D. (1990): "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records," American Economic Review, 80(3): 313-336.
Angrist, Joshua D. (1991): "Does Compulsory School Attendance Affect Schooling and Earnings?" Quarterly Journal of Economics, 106(4): 979-1014.
Benjamin, Dwayne and Loren Brandt. (2002): "Property Rights, Labour Markets, and Efficiency in A Transition Economy: The Case of China," Canadian Journal of Economics, 35(4): 689-716.
Binswanger, Hans P., Camille Bourguignon, and Rogier van den Brink. (2009): "Agricultural Land Redistribution: Toward Greater Consensus". The World Bank: Washinton, D.C.
Brandt, Loren, Scott Rozelle, and Matthew A. Turner. (2004): "Local Government Behavior and Property Right Formation in Rural China," Journal of Institutional and Theoretical Economics, 160, 627-662.
Brandt, Loren, Jikun Huang, Guo Li, and Scott Rozelle. (2002): "Land Rights in Rural China: Facts, Fictions and Issues," China Journal, 47: 67-97.
Coase, H. Ronald. (1937): "The Nature of the Firm," Economica, 4, 386-405.
Coase, H. Ronald. (1960): "The Problem of Social Cost," Journal of Law and Economics, 3, 1-44.
Che, Yi. (2009): "Land Rental Market Development in Rural China," Thesis (M.Phil., Division of Social Science), Hong Kong University of Science and Technology.
Chen, Ye, Hongbin Li, and Li-an Zhou. (2005). "Relative Performance Evaluation and the Turnover of Provincial Leaders in China." Economics Letters, 88(3): 421-425.
Deiniger, Klaus and Gershon Feder. (2001): "Land Institutions and Land Markets," in Bruce L. Gardner and Gordon C. Rausser, Handbook of Agricultural Economics, 1: 288-331.
Deiniger, Klaus and Songqing Jin. (2005): "The Potential of Land Rental Markets in the Process of Economic Development: Evidence from China," Journal of Development Economics, 78, 241-270.
Deiniger, Klaus and Songqing Jin. (2008): "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, 70, 67-101.
Dong, Xiao-yuan. (1996): "Two-tier Land Tenure System and Sustained Economic Growth," World Development, 24(5): 915-928.
Gallant, A. Roland and Douglas W. Nychka. (1987): "Semi-nonparametric Maximum Likelihood Estimation," Econometrica, 15: 363-390.
Jacoby, Hanan G., Guo Li, and Scott Rozelle. (2002): "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, 92(5): 1420-1447.
Jin, Songqing and Klaus Deininger. (2009): "Land Rental markets in the Process of Rural Structural Transformation," Journal of Comparative Economics, 37(4): 629-646.
Kennedy, John James. (2007): "From the Tax-for-Fee Reform to the Abolition of Agricultural Taxes: The Impact on Township Governments in North-west China," China Quarterly, 189: 43-59.
Kimura, Shingo, Keijiro Otsuka, Tetsushi Sonobe, and Scott Rozelle. (2011): "Efficiency of Land Allocation through Tenancy Markets: Evidence from China," Economic Development and Cultural Change, 59(3), 485-510.
Kung, James Kai-sing. (2002): "Off-farm Labor Markets and the Emergence of Land Rental Markets in Rural China," Journal of Comparative Economics, 30(2), 395-414.
Kung, James Kai-sing and Ying Bai. (2011): "Induced Institutional Change or Transaction Costs? The Economic Logic of Land Reallocations in Chinese Agriculture," Journal of Development Studies, 47(10): 1510-1528.
Li, Lixing. (2011). "The Incentive Role of Creating 'Cities' in China." China Economic Review, 22(1): 172-181.
Lin, Justin Yifu. (1995): "Endowments, Technology, and Factor Markets: A Natural Experiment of Induced Institutional Innovation from China's Rural Reform," American Journal of Agricultural Economics, 77, 231-242.
Lin, Justin Yifu. (1988): "Rural Factor Markets in China: After the Household Responsibility System Reform," in Chinese Economic Policy: Economic Reform at Midstream, ed. by Bruce Reynolds: New York, 169-203.
Liu, Shouying, Michael R. Carter, and Yang Yao. (1998): "Dimensions and Diversity of Property Rights in Rural China: Dilemmas on the Road to Further Reform," World Development, 26(10): 1789-1806.
Lohmar, Bryan, Zhaoxin Zhang, and Agapi Somwaru. (2001): "Land Rental Market Development and Agricultural Production in China," Paper presented at the Annual Meetings of the American Agricultural Economics Association, Chicago: Illinois.
Macours, Karen, Alain de Janvry, and Elisabeth Sadoulet. (2010): "Insecurity of Property Rights and Social Matching in the Tenancy Market," European Economic Review, 54: 880-899.
Newey, Whitney K. (1987): "Efficient Estimation of Limited Dependent Variable Models with Endogenous Explanatory Variables," Journal of Econometrics, 36(3): 231-250.
Noev, Nivelin. (2008): "Contracts and Rental Behavior in the Bulgarian Land Market," Eastern European Economics, 46(4), 43-74.
Otsuka, Keijiro, Hiroyuki Chuma, and Yujiro Hayami (1992): "Land and Labor Contracts in Agrarian Economies: Theories and Facts," Journal of Economic Literature, 30(4): 1965-2018.
Rozelle, Scott and Guo Li. (1998): "Village Leaders and Land Rights Formation in China," American Economic Review, Papers and Proceedings, 88(2): 433-438.
Rosenzweig, Mark R. and Kenneth I. Wolpin. (1993): "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, 101(2): 223-244.
Tobin, James. (1958): "Estimation of Relationships for Limited Dependent Variables", Econometrica, 26(1): 24-36.
Vranken, Liesbet and Johan Swinnen. (2006): "Land Rental Markets in Transition: Theory and Evidence from Hungary", World Development, 34(3), 481-500.
Wooldridge, Jeffrey M. (2006): Introductory Econometrics: A Modern Approach. Beijing: Tsinghua University, 557-559.
Xu, Chenggang. (2011). "The Fundamental Institutions of China's Reforms and Development." Journal of Economic Literature, 49(4): 1076-1151.
Yang, Dennis Tao. (1997): "China's land Arrangement and Rural Labor Mobility," China Economic Review, 8(2), 101-115.
Yao, Yang. (2000): "The Development of the Land Lease Market in Rural China," Land Economics, 76, 252-266.
Yao, Yang. (2004): "Land Tenure Choice in Chinese Villages: The Rational Versus the Political Model," Land Economics, 80, 477-489.
Zhang, Junsen, Pak-Wai Liu, and Linda Yung. (2007): "The Cultural Revolution and Returns to Schooling in China: Estimates Based on Twins," Journal of Development Economics, 84: 631-639.
Zhang, Qian Forrest, Qingguo Ma, and Xu Xu. (2004): "Development of Land Rental Markets in Rural Zhejiang: Growth of off-farm jobs and Institutional Building," China Quarterly, 180, 1050-1072.