Advanced Search
MyIDEAS: Login to save this book or follow this series

Land fragmentation and off-farm labor supply in China

Contents:

Author Info

  • Jia, Lili
Registered author(s):

    Abstract

    This thesis focuses on testing whether land fragmentation in China has an impact on off-farm labor supply by utilizing a data set developed between 1995-2002 for the Zhejiang, Hubei and Yunnan Provinces of China. Adopting the institutional innovation theory and a microeconomic farm household model, the thesis contributes to improving the understanding of the current widespread phenomenon of land fragmentation in four aspects: the determinants of land fragmentation in China; a theoretical analysis of the effects of land fragmentation; estimating the effect of land fragmentation on agricultural labor productivity; and estimating the effect of land fragmentation on off-farm labor supply. First, an institutional innovation theory is introduced to analyze the determinants of land fragmentation in China. We find that the current land institution, which leads to land fragmentation, has its roots in the demand for land decentralization from farmers, but is constrained by incomplete property rights. Therefore, land reallocation does not necessarily increase land fragmentation, and whether the land market can reduce land fragmentation or not depends on the development of the local labor market. Second, the microeconomic farm household model is applied to aid in understanding the effects of land fragmentation on agricultural labor productivity and offfarm labor supply. The analysis shows that the effects of land fragmentation depend on the local shape of the production function. A positive effect of land fragmentation on agricultural labor productivity may increase the off-farm labor supply, while a negative effect suggests a decrease of off-farm labor supply, and the effect of off-farm labor supply may be neutral if the labor market is constrained. Third, a test for the effect of land fragmentation on agricultural labor productivity is conducted, and the result shows that the land fragmentation decreases agricultural labor productivity in general, implying an adoption of land consolidation. But this effect is only obvious in the Zhejiang province, where the labor market is better developed. Finally, a direct test for the effect of land fragmentation on off-farm labor supply is implemented. The findings indicate that the off-farm labor supply is not influenced by land fragmentation due to the constrained labor market, suggesting a need to further develop the labor market. Furthermore, the off-farm wage and educational levels play a role in increasing off-farm labor supply, while the land endowment intends to decrease it. -- Diese Arbeit behandelt die Frage, ob die Landfragmentierung in China einen Einfluss auf das außerlandwirtschaftliche Arbeitsangebot hat. Dazu werden Daten aus den chinesischen Provinzen Zhejiang, Hubei und Yunnan der Jahre 1995 bis 2002 herangezogen. Unter Anwendung der Institutionellen Innovationstheorie und des mikroökonomischen Haushaltsmodells trägt diese Arbeit dazu bei, vier Aspekte der Landfragmentierung besser zu verstehen: Die Determinanten der Landfragmentierung in China, die theoretische Analyse der Effekte der Landfragmentierung, empirische Schätzung des Effektes der Landfragmentierung auf die landwirtschaftliche Arbeitsproduktivität und Betrachtung der Auswirkungen der Landfragmentierung auf das außerlandwirtschaftliche Arbeitsangebot. Die gegenwärtigen Institutionen in der Landallokation, die zu dem hohen Grad der Landfragmentierung in China führen, haben ihre Wurzeln in der Nachfrage der Landwirte nach Landdezentralisierung. Problematisch hierbei sind die unvollständigen Eigentumsrechte. Aus diesem Grund steigert Landreallokation nicht notwendigerweise die Landfragmentierung. Die Frage, ob der Landmarkt Landfragmentierung reduzieren kann, hängt zudem von dem Entwicklungsstand des lokalen Arbeitmarktes ab. Zuerst wird in die Institutionelle Innovationstheorie eingeführt, um die Determinanten der Landfragmentierung in China zu herauszuarbeiten. In einem zweiten Schritt wird das mikroökonomische Haushaltsmodell für landwirtschaftliche Haushalte angewandt, um Erkenntnisse über die Effekte der Landfragmentierung auf landwirtschaftliche Arbeitsproduktivität und das außerlandwirtschaftliche Arbeitsangebot zu erlangen. In den Analyseergebnissen kann gezeigt werden, dass die Effekte der Landfragmentierung von der Ausprägung der lokalen Produktionsfunktion abhängen. Eine positive Auswirkung der Landfragmentierung auf landwirtschaftliche Arbeitsproduktivität lässt das außerlandwirtschaftliche Arbeitsangebot der Haushalte steigen. Eine negative Auswirkung dagegen zeigt eine Verringerung des außerlandwirtschaftlichen Arbeitsangebotes. Neutrale Konsequenzen gehen von einem eingeschränkten Arbeitsmarkt aus. An dritter Stelle wird ein Test mit dem Ziel durchgeführt, den Effekt der Landfragmentierung auf landwirtschaftliche Arbeitsproduktivität herauszufinden. Die Ergebnisse zeigen, dass die Landfragmentierung im Allgemeinen die landwirtschaftliche Arbeitsproduktivität reduziert, wenn man einen Landkonsolidierungsprozess annimmt. Allerdings ist dieser Effekt nur für die Provinz Zhejiang eindeutig, wo der Arbeitsmarkt besser entwickelt ist. Schließlich wird ein direkter Test des Einflusses von Landfragmentierung auf das außerlandwirtschaftliche Arbeitsangebot implementiert. Die gewonnenen Erkenntnisse deuten darauf hin, dass das außerlandwirtschaftliche Arbeitsangebot wegen des begrenzten Arbeitsmarktes nicht von der Landfragmentierung beeinflusst wird. Dies deutet darauf hin, dass eine Weiterentwicklung des Arbeitsmarktes unabdingbar ist. Außerdem spielen das außerlandwirtschaftliche Lohnniveau und das Bildungsniveau eine Rolle dabei, das außerlandwirtschaftliche Arbeitsangebot zu vergrößern, wogegen eine ausreichende Ausstattung mit Land es eher verringert.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://econstor.eu/bitstream/10419/60109/1/718930770.pdf
    Download Restriction: no

    Bibliographic Info

    as in new window
    This book is provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series Studies on the Agricultural and Food Sector in Central and Eastern Europe with number 66 and published in 2012.

    Volume: 66
    Handle: RePEc:zbw:iamost:66

    Contact details of provider:
    Postal: Theodor-Lieser-Strasse 2, 06120 Halle(Saale)
    Phone: (+49) (0) 345 / 29 28 0
    Fax: (+49) (0) 345 / 29 28 199
    Email:
    Web page: http://www.iamo.de/
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Yang, Dennis Tao, 2000. "Education and Allocative Efficiency: Household Income Growth during Rural Reforms in China," Working Papers 00-17, Duke University, Department of Economics.
    2. Michael R. Carter & Yang Yao, 2002. "Local versus Global Separability in Agricultural Household Models: The Factor Price Equalization Effect of Land Transfer Rights," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 702-715.
    3. Heston, Alan & Kumar, Dharma, 1983. "The persistence of land fragmentation in peasant agriculture: An analysis of South Asian cases," Explorations in Economic History, Elsevier, vol. 20(2), pages 199-220, April.
    4. Deininger, Klaus & Feder, Gershon, 2001. "Land institutions and land markets," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 6, pages 288-331 Elsevier.
    5. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    6. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
    7. Feder, Gershon, et al, 1992. "The Determinants of Farm Investment and Residential Construction in Post-Reform China," Economic Development and Cultural Change, University of Chicago Press, vol. 41(1), pages 1-26, October.
    8. Anastasia Semykina & Jeffrey M. Woodridge, 2010. "Estimating Panel Data Models in the Presence of Endogeneity and Selection," Working Papers wp2010_10_01, Department of Economics, Florida State University.
    9. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    10. Kung James, Kaising, 1995. "Equal Entitlement versus Tenure Security under a Regime of Collective Property Rights: Peasants' Preference for Institutions in Post-reform Chinese Agriculture," Journal of Comparative Economics, Elsevier, vol. 21(1), pages 82-111, August.
    11. Juvancic, Luka & Erjavec, Emil, 2003. "Intertemporal Analysis Of Employment Decisions On Agricultural Holdings In Slovenia," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25840, International Association of Agricultural Economists.
    12. Ayal Kimhi, 2000. "Is Part-Time Farming Really a Step in the Way Out of Agricultural?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 38-48.
    13. repec:hal:wpaper:halshs-00575041 is not listed on IDEAS
    14. Rachel Sabates-Wheeler, 2002. "Consolidation initiatives after land reform: responses to multiple dimensions of land fragmentation in Eastern European agriculture," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 1005-1018.
    15. Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics, Blackwell, vol. 19(1-2), pages 63-71, September.
    16. 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.
    17. Thomas, Joachim, 2006. "Property Rights, Land Fragmentation and the Emerging Structure of Agriculture in Central and Eastern European Countries," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization, Agricultural and Development Economics Division, vol. 3(2).
    18. de la Rupelle, Maëlys & Quheng, Deng & Li, Shi & Vendryes, Thomas, 2009. "Land Rights Insecurity and Temporary Migration in Rural China," IZA Discussion Papers 4668, Institute for the Study of Labor (IZA).
    19. Lohmar, Bryan & Zhang, Zhaoxin & Somwaru, Agapi, 2001. "Land Rental Market Development And Agricultural Production In China," 2001 Annual meeting, August 5-8, Chicago, IL 20683, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Berck, Peter & Levy, Amnon, 1983. "The Costs of Equal Land Distribution," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2qf188kw, Department of Agricultural & Resource Economics, UC Berkeley.
    21. Dwayne Benjamin & Loren Brandt, 2000. "Property Rights, Labor Markets, and Efficiency in a Transition Economy: The Case of Rural China," Working Papers benjamin-00-02, University of Toronto, Department of Economics.
    22. Stephan Brosig & Thomas Glauben & Thomas Herzfeld & Scott Rozelle & Xiaobing Wang, 2007. "The dynamics of Chinese rural households' participation in labor markets," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 167-178, 09.
    23. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
    24. Cornia, Giovanni Andrea, 1985. "Farm size, land yields and the agricultural production function: An analysis for fifteen developing countries," World Development, Elsevier, vol. 13(4), pages 513-534, April.
    25. Petrick, Martin, 2004. "Credit rationing of Polish farm households: a theoretical and empirical analysis," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 26, number 93022.
    26. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    27. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
    28. Fenoaltea, Stefano, 1976. "Risk, transaction costs, and the organization of medieval agriculture," Explorations in Economic History, Elsevier, vol. 13(2), pages 129-151, April.
    29. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    30. Tan, Shuhao & Heerink, Nico & Kruseman, Gideon & Qu, Futian, 2008. "Do fragmented landholdings have higher production costs? Evidence from rice farmers in Northeastern Jiangxi province, P.R. China," China Economic Review, Elsevier, vol. 19(3), pages 347-358, September.
    31. Emi Uchida & Scott Rozelle & Jintao Xu, 2009. "Conservation Payments, Liquidity Constraints, and Off-Farm Labor: Impact of the Grain-for-Green Program on Rural Households in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 70-86.
    32. Van Hung, Pham & MacAulay, T. Gordon & Marsh, Sally P., 2007. "The economics of land fragmentation in the north of Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), June.
    33. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
    34. Chen, Zhuo & Huffman, Wallace E. & Rozelle, Scott, 2009. "Farm technology and technical efficiency: Evidence from four regions in China," China Economic Review, Elsevier, vol. 20(2), pages 153-161, June.
    35. 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.
    36. Zvi Lerman, 1999. "Land Reform and Farm Restructuring: What Has Been Accomplished to Date?," American Economic Review, American Economic Association, vol. 89(2), pages 271-275, May.
    37. Hanan G. Jacoby & Guo Li & Scott Rozelle, 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, American Economic Association, vol. 92(5), pages 1420-1447, December.
    38. 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.
    39. Nguyen, Tin & Cheng, Enjiang & Findlay, Christopher, 1996. "Land fragmentation and farm productivity in China in the 1990s," China Economic Review, Elsevier, vol. 7(2), pages 169-180.
    40. Bizimana, Claude & Nieuwoudt, W. Lieb & Ferrer, Stuart R.D., 2004. "Farm size, land fragmentation and economic efficiency in southern Rwanda," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(2), June.
    41. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
    42. Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
    43. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
    44. Ackerberg, Daniel & Lanier Benkard, C. & Berry, Steven & Pakes, Ariel, 2007. "Econometric Tools for Analyzing Market Outcomes," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 63 Elsevier.
    45. Bowlus, Audra J. & Sicular, Terry, 2003. "Moving toward markets? Labor allocation in rural China," Journal of Development Economics, Elsevier, vol. 71(2), pages 561-583, August.
    46. Yao, Yang, 1999. "Rural industry and labor market integration in eastern China," Journal of Development Economics, Elsevier, vol. 59(2), pages 463-496, August.
    47. Christopher F Baum & Mark E Schaffer & Steven Stillman, 2002. "IVREG2: Stata module for extended instrumental variables/2SLS and GMM estimation," Statistical Software Components S425401, Boston College Department of Economics, revised 28 Jul 2014.
    48. Shenggen Fan & Connie Chan-Kang, 2005. "Is small beautiful? Farm size, productivity, and poverty in Asian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 135-146, 01.
    49. Ran Tao & Zhigang Xu, 2007. "Urbanization, rural land system and social security for migrants in China," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1301-1320.
    50. Kawasaki, Kentaro, 2010. "The costs and benefits of land fragmentation of rice farms in Japan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), December.
    51. Shingo Kimura & Keijiro Otsuka & Tetsushi Sonobe & Scott Rozelle, 2011. "Efficiency of Land Allocation through Tenancy Markets: Evidence from China," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 485 - 510.
    52. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
    53. Guang Wan & Enjiang Cheng, 2001. "Effects of land fragmentation and returns to scale in the Chinese farming sector," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 183-194.
    54. Jin, Songqing & Deininger, Klaus W., 2007. "Land Rental Markets in the Process of Rural Structural Transformation: Productivity and Equity Impacts from China," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9932, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    55. BROSIG, Stephan & GLAUBEN, Thomas & Herzfeld, Thomas & WANG, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," China Economic Review, Elsevier, vol. 20(2), pages 360-371, June.
    56. Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
    57. Yang Yao, 2004. "Land Tenure Choice in Chinese Villages: The Rational versus the Political Model," Land Economics, University of Wisconsin Press, vol. 80(4).
    58. Sikor, Thomas & Müller, Daniel & Stahl, Johannes, 2009. "Land Fragmentation and Cropland Abandonment in Albania: Implications for the Roles of State and Community in Post-Socialist Land Consolidation," World Development, Elsevier, vol. 37(8), pages 1411-1423, August.
    59. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
    60. Yaohui Zhao, 1997. "Labor Migration and Returns to Rural Education in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1278-1287.
    61. 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, vol. 21(4), pages 598-606, December.
    62. Bhalla, Surjit S & Roy, Prannoy L, 1988. "Mis-specification in Farm Productivity Analysis: The Role of Land Quality," Oxford Economic Papers, Oxford University Press, vol. 40(1), pages 55-73, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:zbw:iamost:66. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.