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Reallocating wealth? Insecure property rights and agricultural investment in rural China

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  • Leight, Jessica

Abstract

This paper evaluates the impact of village-level land reallocations in China on household economic outcomes. The primary objective is to analyze the effect of short-term differences in tenure security in the year of a reallocation, employing the past history of land shifts as a source of exogenous variation in current tenure security. The results show that a decrease in the probability of losing the current plot yields an increase in agricultural inputs and production with no change in non-agricultural investments, conditional on household fixed effects that control for any unobserved and time-invariant characteristics of the household. This suggests that even small increases in the security of tenure enjoyed by households could yield benefits in terms of greater agricultural output.

Suggested Citation

  • Leight, Jessica, 2016. "Reallocating wealth? Insecure property rights and agricultural investment in rural China," China Economic Review, Elsevier, vol. 40(C), pages 207-227.
  • Handle: RePEc:eee:chieco:v:40:y:2016:i:c:p:207-227
    DOI: 10.1016/j.chieco.2016.07.014
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    References listed on IDEAS

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    Cited by:

    1. Steven Nafziger, 2016. "Communal property rights and land redistributions in Late Tsarist Russia," Economic History Review, Economic History Society, vol. 69(3), pages 773-800, August.
    2. Alain de Janvry & Kyle Emerick & Marco Gonzalez-Navarro & Elisabeth Sadoulet, 2015. "Delinking Land Rights from Land Use: Certification and Migration in Mexico," American Economic Review, American Economic Association, vol. 105(10), pages 3125-3149, October.
    3. repec:bla:afrdev:v:29:y:2017:i:s2:p:179-197 is not listed on IDEAS
    4. Li Gao & Wendong Zhang & Yingdan Mei & Abdoul G Sam & Yu Song & Shuqin Jin, 2018. "Do Farmers Adopt Fewer Conservation Practices on Rented Land? Evidence from Straw Retention in China," Center for Agricultural and Rural Development (CARD) Publications 18-wp584, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Kacana Sipangule, 2017. "Agribusinesses, smallholder tenure security, and plot-level investments: Evidence from rural Tanzania," WIDER Working Paper Series 106, World Institute for Development Economic Research (UNU-WIDER).

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