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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 W.
  • Jin, Songqing

Abstract

While recent studies point towards the importance of institutions, in particular secure property rights, as key determinants of economic growth, options to foster institutional change to make property rights more secure are not well understood. Data from 800 villages all over China on the effectiveness with which a law aiming to increase households' tenure security -at the expense of local leaders' powers to reallocate or expropriate land without adequate compensation- provides an opportunity to identify such factors. Using illegal land reallocations and low compensation payments for expropriated land to identify lack of effective institutional change, we find that the impact of property rights reform is contingent on the institutional constraints imposed on leaders' power by democratic institutions and a clear legal framework, households' knowledge of the law, and to some extent presence of land certificates.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21465.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21465

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Keywords: Land Economics/Use;

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Cited by:
  1. Mullan, Katrina & Grosjean, Pauline & Kontoleon, Andreas, 2011. "Land Tenure Arrangements and Rural-Urban Migration in China," World Development, Elsevier, vol. 39(1), pages 123-133, January.
  2. 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.
  3. 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.
  4. 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.
  5. 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).
  6. 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).
  7. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2008. "Impacts of land certification on tenure security, investment, and land markets : evidence from Ethiopia," Policy Research Working Paper Series 4764, The World Bank.
  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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