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The effect of off-farm employment on the decisions of households to rent out and rent in cultivated land in China

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Author Info

  • Jikun Huang
  • Liangliang Gao
  • Scott Rozelle

Abstract

Purpose – Developing nations need good cultivated land rental markets to foster rational resource use and to enhance productivity and equity. Can cultivated land rental markets emerge in the face of rapidly developing off-farm labor markets? The purpose of this paper is to measure the correlation between the emergence of off-farm employment and cultivated land rental in China. Design/methodology/approach – Based on a panel data from 2000 and 2008, the authors constructed econometric models to identify the impact of off-farm employment on the decisions of households to rent out and rent in cultivated land. Findings – This paper finds that the emergence of off-farm employment has significant and positive impacts on stimulating household to rent out cultivated land. The effect is less prominent for renting-in decisions. Originality/value – The paper empirically estimates the impacts of off-farm employment on cultivated land rent markets based on a unique panel data set from a national representative sample.

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Bibliographic Info

Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

Volume (Year): 4 (2012)
Issue (Month): 1 (February)
Pages: 5-17

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Handle: RePEc:eme:caerpp:v:4:y:2012:i:1:p:5-17

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Related research

Keywords: Agriculture; China; Cultivated land rental market; Land; Off-farm employment;

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References

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  1. Michael Kevane, 1996. "Agrarian Structure and Agricultural Practice: Typology and Application to Western Sudan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 236-245.
  2. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
  3. Loren Brandt & Scott Rozelle & Matthew A. Turner, 2002. "Local Government Behavior and Property Right Formation in Rural China," Working Papers mturner-02-01, University of Toronto, Department of Economics.
  4. Daniel H. Rosen & Scott Rozelle & Jikan Huang, 2004. "Roots of Competitiveness: China's Evolving Agriculture Interests," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa72.
  5. Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.
  6. Deininger, Klaus W. & Jin, Songqing, 2005. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19359, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Nabi, Ijaz, 1985. "Rural Factor Market Imperfections and the Incidence of Tenancy in Agriculture," Oxford Economic Papers, Oxford University Press, vol. 37(2), pages 319-29, June.
  8. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
  9. Otsuka, Keijiro, 2007. "Efficiency and Equity Effects of Land Markets," Handbook of Agricultural Economics, Elsevier.
  10. Xiaofei Li, & Chengfang Liu & Renfu Luo & Linxiu Zhang & Scott Rozelle, 2010. "The challenges facing young workers during rural labor transition," China Agricultural Economic Review, Emerald Group Publishing, vol. 2(2), pages 185-199, May.
  11. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution of China's Rural Labor Markets During the Reforms," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 329-353, June.
  12. Yang Yao, 2000. "The Development of the Land Lease Market in Rural China," Land Economics, University of Wisconsin Press, vol. 76(2), pages 252-266.
  13. Kung, James Kai-sing, 2002. "Off-Farm Labor Markets and the Emergence of Land Rental Markets in Rural China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 395-414, June.
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