IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Securing property rights in transition: Lessons from implementation of China's rural land contracting law

  • Deininger, Klaus
  • Jin, Songqing

Motivated by the emphasisis on secure property rights as a determinant of economic development in recent literature, we use village- and household-level information from about 800 villages throughout China to explore whether legal reform increased protection of land rights against unauthorized reallocation or expropriation with below-average compensation by the state. In addition to providing nation-wide evidence on a sensitive topic, we find positive impacts, equivalent increasing land values by 30 percent, of reform even in the short term that originated in villages where democratic election of leaders ensured a minimum level of accountability, pointing towards complementarity between good governance and legal reform. Implications for situations where individuals and groups hold overlapping rights to land are explored.

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://www.sciencedirect.com/science/article/B6V8F-4VCNP4M-2/2/0739ad9810ddd90067fefd32a9bd213a
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 70 (2009)
Issue (Month): 1-2 (May)
Pages: 22-38

as
in new window

Handle: RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:22-38
Contact details of provider: Web page: http://www.elsevier.com/locate/jebo

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. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics and Organization, Oxford University Press, vol. 15(1), pages 222-79, April.
  2. Acemoglu, Daron, 2003. "Why not a political Coase theorem? Social conflict, commitment, and politics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 620-652, December.
  3. Ronald Giammarino & Ed Nosal, 2004. "Loggers vs. campers: compensation for the taking of property rights," Working Paper 0406, Federal Reserve Bank of Cleveland.
  4. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
  5. Daron Acemoglu & Simon Johnson & James Robinson, 2004. "Institutions as the Fundamental Cause of Long-Run Growth," NBER Working Papers 10481, National Bureau of Economic Research, Inc.
  6. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," NBER Working Papers 8852, National Bureau of Economic Research, Inc.
  7. Tao Yang, Dennis, 1997. "China's land arrangements and rural labor mobility," China Economic Review, Elsevier, vol. 8(2), pages 101-115.
  8. Yang Yao, 2000. "The Development of the Land Lease Market in Rural China," Land Economics, University of Wisconsin Press, vol. 76(2), pages 252-266.
  9. Simeon Djankov & Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2003. "The New Comparative Economics," NBER Working Papers 9608, National Bureau of Economic Research, Inc.
  10. Morduch, Jonathan & Sicular, Terry, 2000. "Politics, growth, and inequality in rural China: does it pay to join the Party?," Journal of Public Economics, Elsevier, vol. 77(3), pages 331-356, September.
  11. Karen C. Seto & Robert K. Kaufmann, 2003. "Modeling the Drivers of Urban Land Use Change in the Pearl River Delta, China: Integrating Remote Sensing with Socioeconomic Data," Land Economics, University of Wisconsin Press, vol. 79(1), pages 106-121.
  12. Benito Arruñada & Nuno Garoupa, 2001. "The choice of titling system in land," Economics Working Papers 607, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 2004.
  13. Deininger, Klaus & Ayalew, Daniel & Yamano, Takashi, 2006. "Legal knowledge and economic development : the case of land rights in Uganda," Policy Research Working Paper Series 3868, The World Bank.
  14. Frye, Timothy & Zhuravskaya, Ekaterina, 2000. "Rackets, Regulation, and the Rule of Law," Journal of Law, Economics and Organization, Oxford University Press, vol. 16(2), pages 478-502, October.
  15. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
  16. Zhang, Xiaobo & Fan, Shenggen & Zhang, Linxiu & Huang, Jikun, 2001. "Local Governance And Public Goods Provision," 2001 Annual meeting, August 5-8, Chicago, IL 20570, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  17. Cull, Robert & Xu, Lixin Colin, 2005. "Institutions, ownership, and finance: the determinants of profit reinvestment among Chinese firms," Journal of Financial Economics, Elsevier, vol. 77(1), pages 117-146, July.
  18. Ross Levine, 2005. "Law, Endowments, and Property Rights," NBER Working Papers 11502, National Bureau of Economic Research, Inc.
  19. Ron Giammarino, 2005. "Loggers versus Campers: Compensation for the Taking of Property Rights," Journal of Law, Economics and Organization, Oxford University Press, vol. 21(1), pages 136-152, April.
  20. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  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. Brandt, Loren & Rozelle, Scott & Turner, Matthew A., 2002. "Local Government Behavior And Property Rights Formation In Rural China," Working Papers 11988, University of California, Davis, Department of Agricultural and Resource Economics.
  23. Qingshan Tan, 2004. "Building institutional rules and procedures: Village�election�in�China," Policy Sciences, Springer, vol. 37(1), pages 1-22, 03.
  24. Putterman Louis & Skillman Gilbert L., 1993. "Collectivization and China's Agricultural Crisis," Journal of Comparative Economics, Elsevier, vol. 17(2), pages 530-539, June.
  25. Abhijit Banerjee & Lakshmi Iyer, 2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," American Economic Review, American Economic Association, vol. 95(4), pages 1190-1213, September.
  26. 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.
  27. Zhang, Xiaobo & Fan, Shenggen & Zhang, Linxiu & Huang, Jikun, 2002. "Local governance and public goods provision in rural China:," EPTD discussion papers 93, International Food Policy Research Institute (IFPRI).
  28. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
  29. Hongbin Cai & Hanming Fang & Lixin Colin Xu, 2005. "Eat, Drink, Firms and Government: An Investigation of Corruption from Entertainment and Travel Costs of Chinese Firms," NBER Working Papers 11592, National Bureau of Economic Research, Inc.
  30. repec:ner:tilbur:urn:nbn:nl:ui:12-3125511 is not listed on IDEAS
  31. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2002. "Law and Finance: why Does Legal Origin Matter?," NBER Working Papers 9379, National Bureau of Economic Research, Inc.
  32. Parente, Stephen L & Rios-Rull, Jose-Victor, 2005. "The Success and Failure of Reforms in Transition Economies," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(1), pages 23-42, February.
  33. Sonin, Konstantin, 2003. "Why the rich may favor poor protection of property rights," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 715-731, December.
  34. Hoff, Karla & Stiglitz, Joseph E., 2002. "After the Big Bang? Obstacles to the emergence of the rule of law in post-communist societies," Policy Research Working Paper Series 2934, The World Bank.
  35. Yan Shen & Yang Yao, 2006. "Grassroots Democracy and Income Distribution : Evidence from Village Elections in China," Governance Working Papers 21901, East Asian Bureau of Economic Research.
  36. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  37. Rozelle, Scott & Deng, Xiangzheng & Huang, Jikun & Uchida, Emi, 2005. "Expansion of China's Cities and Agricultural Production," 2005 Annual meeting, July 24-27, Providence, RI 19323, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  38. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
  39. Nugent, Jeffrey B & Robinson, James A, 2002. "Are Endowments Fate?," CEPR Discussion Papers 3206, C.E.P.R. Discussion Papers.
  40. Lin, Justin Yifu & Yang, Dennis Tao, 2000. "Food Availability, Entitlements and the Chinese Famine of 1959-61," Economic Journal, Royal Economic Society, vol. 110(460), pages 136-58, January.
  41. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
  42. Pranab Bardhan, 2005. "Institutions matter, but which ones?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(3), pages 499-532, 07.
  43. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
  44. Miceli, Thomas J, et al, 2002. "Title Systems and Land Values," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 565-82, October.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:22-38. 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: (Zhang, Lei)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.