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The Impact of Property Rights on Households' Investment, Risk Coping, and Policy Preferences: Evidence from China

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Author Info

  • Deininger, Klaus
  • Jin, Songqing

Abstract

Even though it is widely recognized that giving farmers more secure land rights may increase agricultural investment, scholars contend that, in the case of China, such a policy might undermine the function of land as a social safety net and, as a consequence, not be sustainable or command broad support. Data from three provinces, one of which had adopted a policy to increase security of tenure in advance of the others, suggest that greater tenure security, especially if combined with transferability of land, had a positive impact on agricultural investment and, within the time frame considered, led neither to an increase in inequality of land distribution nor a reduction in households'ability to cope with exogenous shocks. Household support for more secure property rights is increased by their access to other insurance mechanisms, suggesting some role of land as a safety net. At the same time, past exposure to this type of land right has a much larger impact quantitatively, suggesting that a large part of the resistance to changed property rights arrangements disappears as household familiarity with such rights increases.

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Bibliographic Info

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

Volume (Year): 51 (2003)
Issue (Month): 4 (July)
Pages: 851-82

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Handle: RePEc:ucp:ecdecc:y:2003:v:51:i:4:p:851-82

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References

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  1. Carter, Michael R. & Yang Yao, 1999. "Specialization without regret - transfer rights, agricultural productivity, and investment in an industrializing economy," Policy Research Working Paper Series 2202, The World Bank.
  2. Liu, Shouying & Carter, Michael R. & Yao, Yang, 1998. "Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform," World Development, Elsevier, vol. 26(10), pages 1789-1806, October.
  3. Rozelle, Scott & Li, Guo, 1998. "Village Leaders and Land-Rights Formation in China," American Economic Review, American Economic Association, vol. 88(2), pages 433-38, May.
  4. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
  5. Gale Johnson, D., 1998. "China's great famine: Introductory remarks," China Economic Review, Elsevier, vol. 9(2), pages 103-109.
  6. Knight, John & Li, Shi, 1996. "Educational Attainment and the Rural--Urban Divide in China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 83-117, February.
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Citations

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Cited by:
  1. Bellemare, Marc F., 2010. "Insecure Land Rights and Share Tenancy in Madagascar," MPRA Paper 23640, University Library of Munich, Germany.
  2. de Brauw, Alan & Giles, John, 2008. "Migrant opportunity and the educational attainment of youth in rural China," Policy Research Working Paper Series 4526, The World Bank.
  3. Jia, Xiangping & Piotrowski, Stephan, 2006. "Land property, tenure security and credit access: a historical perspective of change processes in China," Research in Development Economics and Policy (Discussion Paper Series) 9083, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
  4. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Publications, The World Bank, number 6924, October.
  5. Lichtenberg, Erik, 2006. ""A note on soil depth, failing markets and agricultural pricing": Comment," Journal of Development Economics, Elsevier, vol. 81(1), pages 236-243, October.
  6. 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.
  7. Deininger, Klaus & Songqing Jin & Adenew, Berhanu & Gebre-Selassie, Samuel & Demeke, Mulat, 2003. "Market and non-market transfers of land in Ethiopia - implications for efficiency, equity, and non-farm development," Policy Research Working Paper Series 2992, The World Bank.
  8. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
  9. World Bank, 2007. "Poverty and Environment : Understanding Linkages at the Household Level," World Bank Other Operational Studies 7744, The World Bank.
  10. 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.
  11. Bellemare, Marc F., 2010. "The Productivity Impacts of de Jure and de Facto Land Rights," MPRA Paper 23639, University Library of Munich, Germany.

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