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Securing property rights in transition: Lessons from implementation of China's rural land contracting law

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  • Deininger, Klaus
  • Jin, Songqing

Abstract

Motivated by the emphasisis on secure property rights as a determinant of economic development in recent literature, we use village- and household-level information from about 800 villages throughout China to explore whether legal reform increased protection of land rights against unauthorized reallocation or expropriation with below-average compensation by the state. In addition to providing nation-wide evidence on a sensitive topic, we find positive impacts, equivalent increasing land values by 30 percent, of reform even in the short term that originated in villages where democratic election of leaders ensured a minimum level of accountability, pointing towards complementarity between good governance and legal reform. Implications for situations where individuals and groups hold overlapping rights to land are explored.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 70 (2009)
Issue (Month): 1-2 (May)
Pages: 22-38

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Handle: RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:22-38

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Keywords: Property rights Tenure security Legal change Governance China;

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Citations

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Cited by:
  1. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2009. "Impacts of Land Certification on Tenure Security, Investment, and Land Markets: Evidence from Ethiopia," Discussion Papers dp-09-11-efd, Resources For the Future.
  2. Katrina Mullan & Pauline Grosjean & Andreas Kontoleon, 2008. "Land Tenure Arrangements and Rural-Urban Migration in China," Environmental Economy and Policy Research Working Papers 37.2008, University of Cambridge, Department of Land Economics, revised 2008.
  3. Jia, Lili & Petrick, Martin, 2011. "How land fragmentation affects off-farm labor supply in China: Evidence from household panel data," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114522, German Association of Agricultural Economists (GEWISOLA).
  4. Paul Castãneda Dower & Tobias Pfutze, 2012. "Specificity of Control: The Case of Mexico's Ejido Reform," Working Papers w0188, Center for Economic and Financial Research (CEFIR).
  5. Deininger, Klaus & Savastano, Sara & Carletto, Calogero, 2012. "Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania," World Development, Elsevier, vol. 40(10), pages 2108-2122.
  6. Xianlei Ma & Justus Wesseler & Nico Heerink & Futian Qu, 2013. "Land Tenure Reforms and Land Conservation Investments in China ¨C What Does Real Option Value Theory Tell Us?," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 19-33, August.
  7. de Brauw, Alan & Mu, Ren, 2011. "Migration and the overweight and underweight status of children in rural China," Food Policy, Elsevier, vol. 36(1), pages 88-100, 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, vol. 5(1), September.

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