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Tenure, land rights, and farmer investment incentives in China

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  • Guo Li
  • Scott Rozelle
  • Loren Brandt

Abstract

The goal of this paper is to understand the nature of the property rights associated with China's land tenure systems and to study the impact of these property rights on agricultural production efficiency. The results show that land tenure and associated property rights in rural China affect the production behavior of farmers. The most robust finding is that the right to use land for long periods of time encourages the use of land‐saving investments. While the results show that land tenure affects agricultural production decisions, the difference between collective and private plots, however, is small compared to the private plot‐ communal productivity gap that existed in the pre‐reform period.

Suggested Citation

  • Guo Li & Scott Rozelle & Loren Brandt, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 63-71, September.
    • Handle: RePEc:bla:agecon:v:19:y:1998:i:1-2:p:63-71
    DOI: 10.1111/j.1574-0862.1998.tb00515.x
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    1. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    2. 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.
    3. Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October.
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