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Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China

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  • Jin, Songqing
  • Deininger, Klaus

Abstract

Although the importance of land rental for overall economic development and development of the non-agricultural economy has long been recognized in theory, empirical evidence on factors that can promote or impede operation of such markets and their productivity and equity impacts, especially in rapidly developing economies with rather equal land endowments, remains limited. A large household level panel is used to illustrate the large contribution of land markets to occupational diversification, productivity of land use, and household welfare. Factors affecting land market participation are derived from a household model with transaction cost and individual ability. Results suggest that, by transferring land from less able and more affluent households who joined the non-farm sector to poorer ones with ample family labor, land markets are critical not only for non-agricultural growth but, by allowing more effective use of potentially idle land can contribute to significant productivity gains. Policy implications are derived.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 37 (2009)
Issue (Month): 4 (December)
Pages: 629-646

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Handle: RePEc:eee:jcecon:v:37:y:2009:i:4:p:629-646

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Land rental China Rural structure Productivity Equity;

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Citations

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Cited by:
  1. Feng, Shuyi & Heerink, Nico & Ruben, Ruerd & Qu, Futian, 2010. "Land rental market, off-farm employment and agricultural production in Southeast China: A plot-level case study," China Economic Review, Elsevier, Elsevier, vol. 21(4), pages 598-606, December.
  2. Katsushi S. Imai & Jing You, 2013. "Poverty Dynamics of Households in Rural China," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University DP2013-16, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2013.
  3. Mullan, Katrina & Grosjean, Pauline & Kontoleon, Andreas, 2011. "Land Tenure Arrangements and Rural-Urban Migration in China," World Development, Elsevier, Elsevier, vol. 39(1), pages 123-133, January.
  4. Stephen O'Neill & Kevin Hanrahan, 2010. "The importance of accounting for unobserved heterogeneity, state-dependence and differences in residual variances across groups: An application to Irish Farmers land market participation decisions," Working Papers, Rural Economy and Development Programme,Teagasc 1005, Rural Economy and Development Programme,Teagasc.
  5. Aryal, Jeetendra P. & Holden, Stein T., 2011. "Caste Discrimination, Land Reforms and Land Market Performance in Nepal," CLTS Working Papers, Centre for Land Tenure Studies, Norwegian University of Life Sciences 1/11, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  6. Wang, Xiaobing & Yu, Xiaohua, 2011. "Scale Effects, Technical Efficiency and Land Lease in China," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 115736, European Association of Agricultural Economists.
  7. Jikun Huang & Liangliang Gao & Scott Rozelle, 2012. "The effect of off-farm employment on the decisions of households to rent out and rent in cultivated land in China," China Agricultural Economic Review, Emerald Group Publishing, Emerald Group Publishing, vol. 4(1), pages 5-17, February.
  8. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, African Association of Agricultural Economists, vol. 5(1), September.
  9. Che, Yi, 2009. "Mismatch: land reallocations, recovery land rental and land rental market development in rural China," MPRA Paper 39794, University Library of Munich, Germany.
  10. Deininger, Klaus & Jin, Songqing & Xia, Fang, 2012. "Moving off the farm: Land institutions to facilitate structural transformation and agricultural productivity growth in China," Policy Research Working Paper Series, The World Bank 5949, The World Bank.
  11. Sharmina Ahmed & Christopher Findlay, 2012. "Participation and Contract Choice in the Tenancy Market," EERI Research Paper Series, Economics and Econometrics Research Institute (EERI), Brussels EERI_RP_2012_04, Economics and Econometrics Research Institute (EERI), Brussels.
  12. Huy, Hoang & Lyne, Michael & Ratna, Nazmun & Nuthall, Peter, 2013. "Efficiency And Equity Impacts Of The Rental Market For Cropland In Vietnam And Sources Of Transaction Costs Impeding The Market," 2013 Conference, August 28-30, 2013, Christchurch, New Zealand, New Zealand Agricultural and Resource Economics Society 160264, New Zealand Agricultural and Resource Economics Society.
  13. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2011. "Productivity effects of land rental markets in Ethiopia : Evidence from a matched tenant-landlord sample," Policy Research Working Paper Series, The World Bank 5727, The World Bank.
  14. Katsushi Imai & Jin You, 2012. "Poverty Dynamics of Households in Rural China: Identifying Multiple Pathways for Poverty Transition," The School of Economics Discussion Paper Series, Economics, The University of Manchester 1203, Economics, The University of Manchester.
  15. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 66, number 66.
  16. Khantachavana, Sivalai V. & Turvey, Calum G. & Kong, Rong & Xia, Xianli, 2013. "On the transaction values of land use rights in rural China," Journal of Comparative Economics, Elsevier, Elsevier, vol. 41(3), pages 863-878.

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