IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v59y2016icp1-11.html
   My bibliography  Save this article

Land rental development via institutional innovation in rural Jiangsu, China

Author

Listed:
  • Ito, Junichi
  • Bao, Zongshun
  • Ni, Jing

Abstract

Previous studies have demonstrated that there are two important preconditions for encouraging land rental in agriculture: out-migration and the enhancement of security and transferability of land rights. Focusing on the latter, we scrutinize the impacts of institutions aimed at facilitating land use dynamism, particularly the Rural Shareholding Cooperatives (RSCs), which have been established recently at the local level in rural China. In general, we find that RSCs can pave the way for the extension of property rights to farmland and promote more efficient land use patterns. Using survey data collected from 300 village committees in rural Jiangsu province, we estimate the effectiveness of RSCs in encouraging land rental. Our analysis reveals that RSCs can serve as intermediate agents for reducing transaction costs associated with exchange of land use rights and, thereby, not only encourage land rental/consolidation activities but also enable the entry of non-farm household entities into the farm business.

Suggested Citation

  • Ito, Junichi & Bao, Zongshun & Ni, Jing, 2016. "Land rental development via institutional innovation in rural Jiangsu, China," Food Policy, Elsevier, vol. 59(C), pages 1-11.
    • Handle: RePEc:eee:jfpoli:v:59:y:2016:i:c:p:1-11
    DOI: 10.1016/j.foodpol.2015.12.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919215001426
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2015.12.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dwayne Benjamin & Loren Brandt, 2002. "Property rights, labour markets, and efficiency in a transition economy: the case of rural China," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 689-716, November.
    2. Liu, Shouying & Carter, Michael R. & Yao, Yang, 1998. "Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform," World Development, Elsevier, vol. 26(10), pages 1789-1806, October.
    3. 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.
    4. Michael R. Carter & Yang Yao, 2002. "Local versus Global Separability in Agricultural Household Models: The Factor Price Equalization Effect of Land Transfer Rights," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 702-715.
    5. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
    6. 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.
    7. Lanchih Po, 2008. "Redefining Rural Collectives in China: Land Conversion and the Emergence of Rural Shareholding Co-operatives," Urban Studies, Urban Studies Journal Limited, vol. 45(8), pages 1603-1623, July.
    8. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    9. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    10. Otsuka, Keijiro, 2007. "Efficiency and Equity Effects of Land Markets," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 51, pages 2671-2703, Elsevier.
    11. Shingo Kimura & Keijiro Otsuka & Tetsushi Sonobe & Scott Rozelle, 2011. "Efficiency of Land Allocation through Tenancy Markets: Evidence from China," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 485-510.
    12. Emmanuel Skoufias, 1995. "Household Resources, Transaction Costs, and Adjustment through Land Tenancy," Land Economics, University of Wisconsin Press, vol. 71(1), pages 42-56.
    13. Loren Brandt & Scott Rozelle & Matthew A. Turner, 2004. "Local Government Behavior and Property Right Formation in Rural China," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 627-662, December.
    14. Krusekopf, Charles C., 2002. "Diversity in land-tenure arrangements under the household responsibility system in China," China Economic Review, Elsevier, vol. 13(2-3), pages 297-312.
    15. Martin Ravallion & Dominique van de Walle, 2006. "Land Reallocation in an Agrarian Transition," Economic Journal, Royal Economic Society, vol. 116(514), pages 924-942, October.
    16. Bryan Lohmar, 2006. "Feeling for Stones But Not Crossing the River: China's Rural Land Tenure After Twenty Years of Reform," Chinese Economy, Taylor & Francis Journals, vol. 39(4), pages 85-102, August.
    17. Ran Tao & Zhigang Xu, 2007. "Urbanization, rural land system and social security for migrants in China," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1301-1320.
    18. Lanchih Po, 2011. "Property Rights Reforms and Changing Grassroots Governance in China’s Urban—Rural Peripheries: The Case of Changping District in Beijing," Urban Studies, Urban Studies Journal Limited, vol. 48(3), pages 509-528, February.
    19. Eswaran, Mukesh & Kotwal, Ashok, 1985. "A Theory of Two-Tier Labor Markets in Agrarian Economies," American Economic Review, American Economic Association, vol. 75(1), pages 162-177, March.
    20. Feng, Shuyi & Heerink, Nico & Ruben, Ruerd & Qu, Futian, 2010. "Land rental market, off-farm employment and agricultural production in Southeast China: A plot-level case study," China Economic Review, Elsevier, vol. 21(4), pages 598-606, December.
    21. Zhang Wenfang & Jack Makeham, 1992. "Recent Developments in the Market for Rural Land Use in China," Land Economics, University of Wisconsin Press, vol. 68(2), pages 139-162.
    22. Kung, James Kai-sing, 2002. "Off-Farm Labor Markets and the Emergence of Land Rental Markets in Rural China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 395-414, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Xinyi & Ito, Junichi, 2021. "An empirical study of land rental development in rural Gansu, China: The role of agricultural cooperatives and transaction costs," Land Use Policy, Elsevier, vol. 109(C).
    2. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    3. Ma, Meilin, 2017. "Earthbound Labor and Incomplete Exit from Farming in China: Multiple Distortions and Nonseparable Decisions," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258414, Agricultural and Applied Economics Association.
    4. Zhang, Jian & Mishra, Ashok K. & Ma, Xianlei, 2023. "Mechanism of Chinese farmers’ land rental participation: The role of invisible markets and public intervention," Food Policy, Elsevier, vol. 117(C).
    5. Che, Yi, 2009. "Mismatch: land reallocations, recovery land rental and land rental market development in rural China," MPRA Paper 39794, University Library of Munich, Germany.
    6. Hengzhou Xu & Yihang Zhao & Ronghui Tan & Hongchun Yin, 2017. "Does the Policy of Rural Land Rights Confirmation Promote the Transfer of Farmland in China?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(4), pages 643-672, December.
    7. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Trade policy impacts under alternative land market regimes in rural China," China Economic Review, Elsevier, vol. 23(4), pages 1071-1089.
    8. Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.
    9. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    10. Jianyun Hou & Xuexi Huo & Runsheng Yin, 2017. "Land Rental Market Participation and Its Impact on Fixed Investment and Household Welfare: Evidence from Chinese Apple Production Sites," Sustainability, MDPI, vol. 9(11), pages 1-15, October.
    11. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    12. Jian Zhang & Ashok K. Mishra & Peixin Zhu, 2021. "Land rental markets and labor productivity: Evidence from rural China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 93-115, March.
    13. Han Zhang & Jari Kuuluvainen & Hongqiang Yang & Yi Xie & Can Liu, 2017. "The Effect of Off-Farm Employment on Forestland Transfers in China: A Simultaneous-Equation Tobit Model Estimation," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    14. Hoken, Hisatoshi, 2012. "Development of land rental market and its effect on household farming in rural China : an empirical study in Zhejiang Province," IDE Discussion Papers 323, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    15. Jia, Lili & Petrick, Martin, 2014. "How does land fragmentation affect off-farm labor supply: panel data evidence from China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 369-380.
    16. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Policy impacts under alternative land market regimes in rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125860, International Association of Agricultural Economists.
    17. Han Zhang & Jari Kuuluvainen & Youliang Ning & Wenmei Liao & Can Liu, 2017. "Institutional Regime, Off-Farm Employment, and the Interaction Effect: What are the Determinants of Households’ Forestland Transfer in China?," Sustainability, MDPI, vol. 9(10), pages 1-15, October.
    18. 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).
    19. Derek G. Stacey, 2011. "Tenure Insecurity, Adverse Selection, And Liquidity In Rural Land Markets," Working Paper 1269, Economics Department, Queen's University.
    20. Kai Huang & Xin Deng & Yi Liu & Zhuolin Yong & Dingde Xu, 2020. "Does off-Farm Migration of Female Laborers Inhibit Land Transfer? Evidence from Sichuan Province, China," Land, MDPI, vol. 9(1), pages 1-14, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:59:y:2016:i:c:p:1-11. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.