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Hazards Of Expropriation:Tenure Insecurity And Investment In Rural China

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Author Info
Jacoby, Hanan G.
Li, Guo
Rozelle, Scott

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Abstract

This paper uses household data from Northeast China to examine the link between investment and land tenure insecurity induced by China’'s system of village-level land reallocation. We quantify expropriation risk using a hazard analysis of individual plot tenures and incorporate the predicted “hazards of expropriation” into an empirical analysis of plot-level investment. Our focus is on organic fertilizer use, which has long lasting benefits for soil quality. Although we find that higher expropriation risk significantly reduces application of organic fertilizer, a welfare analysis shows that guaranteeing land tenure in this part of China would yield only minimal efficiency gains.

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Paper provided by University of California, Davis, Department of Agricultural and Resource Economics in its series Working Papers with number 11960.

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Date of creation: 2002
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Handle: RePEc:ags:ucdavw:11960

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Keywords: Land Economics/Use;

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References listed on IDEAS
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  1. 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. [Downloadable!]
  2. Qian, Nancy, 2006. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," CEPR Discussion Papers 5986, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Deininger, Klaus & Songqing Jin, 2002. "Land rental markets as an alternative to government reallocation? equity and efficiency considerations in the Chinese land tenure system," Policy Research Working Paper Series 2930, The World Bank. [Downloadable!]
  4. Luis H.B. Braido, 2005. "Risk and Insurance in Sharecropping," Risk and Insurance 0508002, EconWPA. [Downloadable!]
  5. Kazianga, Harounan & Masters, William A., 2002. "Property Rights, Production Technology And Deforestation: Cocoa In West Africa," 2002 Annual meeting, July 28-31, Long Beach, CA 19871, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  6. Li, Guo & Rozelle, Scott & Huang, Jikun, 2000. "Land Rights, Farmer Investments Incentives, And Agricultural Production In China," Working Papers 11958, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  7. Jacoby, Hanan G. & Mansuri, Ghazala, 2006. "Incomplete contracts and investment : a study of land tenancy in Pakistan," Policy Research Working Paper Series 3826, The World Bank. [Downloadable!]
  8. Andreas Kontoleon & Pauline Grosjean, 2007. "How Sustainable are Sustainable Development Programs? The Case of the Sloping Land Conversion Program in China," Environmental Economy and Policy Research Working Papers 26.2007, University of Cambridge, Department of Land Economics, revised 2007. [Downloadable!]
    Other versions:
  9. Tilman Brück, 2003. "Investment in Land, Tenure Security and Area Farmed in Northern Mozambique," HiCN Working Papers 01, Households in Conflict Network. [Downloadable!]
  10. de Brauw, Alan & Giles, John, 2008. "Migrant labor markets and the welfare of rural households in the developing world : evidence from China," Policy Research Working Paper Series 4585, The World Bank. [Downloadable!]
    Other versions:
  11. Deininger, Klaus & Mpuga, Paul, 2003. "Land Markets In Uganda: Incidence, Impact And Evolution Over Time," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25809, International Association of Agricultural Economists. [Downloadable!]
  12. Luis H.B. Braido, 2005. "Evidence on the Incentive Properties of Share Contracts," Development and Comp Systems 0508013, EconWPA. [Downloadable!]
  13. Jane Kabubo-Mariara, 2006. "Land conservation in Kenya: The role of property rights," Research Papers RP_153, African Economic Research Consortium. [Downloadable!]
  14. Karen Macours & Alain de Janvry & Elisabeth Sadoulet, 2004. "Insecurity of Property Rights and Matching in the Tenancy Market," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 992, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
  15. 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. [Downloadable!]
  16. Swinnen, J.F.M., 2005. "Agricultural transformation: Lessons from experience," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(1), March. [Downloadable!]
  17. Deininger, Klaus & Jin, Songqing & Adenew, Berhanu & Gebre-Selassie, Samuel & Nega, Berhanu, 2003. "Tenure security and land-related investment - evidence from Ethiopia," Policy Research Working Paper Series 2991, The World Bank. [Downloadable!]
    Other versions:
  18. Tilman Brück, 2003. "Land Access, Tenure and Investment in Post-War Northern Mozambique," Discussion Papers of DIW Berlin 358, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  19. Alan de Brauw & John Giles, 2006. "Migrant Opportunity and the Educational Attainment of Youth in Rural China," IZA Discussion Papers 2326, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  20. Alan de Brauw & Scott Rozelle, 2003. "Household Investment through migration in Rural China," Department of Economics Working Papers 200, Department of Economics, Williams College. [Downloadable!]
  21. Deininger, Klaus & Jin, Songqing, 2006. "Securing property rights in transition: Lessons from implementation of China's rural land contracting law," 2006 Annual meeting, July 23-26, Long Beach, CA 21465, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
    Other versions:
  22. 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. [Downloadable!]
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