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Efficiency of Land Allocation through Tenancy Markets: Evidence from China

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  • Shingo Kimura
  • Keijiro Otsuka
  • Tetsushi Sonobe
  • Scott Rozelle

Abstract

Tenancy markets provide an opportunity to trade land between labor-scarce farm households and labor-abundant households. In China and other rapidly growing countries in Asia where rural to urban migration is becoming active, facilitating well-functioning tenancy markets is important to increase farm size and farmer’s income. In China, however, individual land rights are weak and in many communities land may be reallocated by village leaders to other households if it is rented out. We hypothesize that the risk of expropriation of rented-out land is a major constraint on land rental transactions in China. We find empirical evidence in support of this hypothesis using farm household data.

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File URL: http://www.jstor.org/stable/full/10.1086/649639
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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 59 (2011)
Issue (Month): 3 ()
Pages: 485 - 510

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Handle: RePEc:ucp:ecdecc:doi:10.1086/649639

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Web page: http://www.journals.uchicago.edu/EDCC/

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Cited by:
  1. 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.
  2. Hoken, Hisatoshi, 2012. "Development of land rental market and its effect on household farming in rural China : an empirical study in Zhejiang Province," IDE Discussion Papers 323, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  3. 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.
  4. Zhang, Yanjie & Wang, Xiaobing & Bruemmer, Bernhard & Yu, Xiaohua, 2012. "The impact of land security and input allocation on farm household income," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126467, International Association of Agricultural Economists.
  5. 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), volume 66, number 66.
  6. Otsuka, Keijiro, 2012. "Presidential Address at 27th International Conference of Agricultural Economists, Foz do Iguaçu, Brazil : Food Insecurity, Income Inequality, and the Changing Comparative Advantage in World Agricultu," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 127068, International Association of Agricultural Economists.
  7. Kung, James Kai-sing & Shimokawa, Satoru, 2012. "Land Reallocations, Passive Land Rental, and the Development of Rental Markets in Rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125099, International Association of Agricultural Economists.

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