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Land titling, land reallocation experience, and investment incentives: Evidence from rural China

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  • Hong, Weijie
  • Luo, Biliang
  • Hu, Xinyan

Abstract

The impacts of land titling on investment incentives among farmers with different land reallocation experiences are studied in this work. Ordered Probit model and 2SLS are employed to estimate the survey data collected from 2704 households in rural countries in China. We find that, generally, land titling can substantially promote investment incentive among farmers. However, the impacts vary among farmers with different land reallocation experiences. Specifically, land titling positively affects farmers without land reallocation experience, but it negatively affects those farmers who experienced big reallocation. Land titling has an investment incentive effect on China’s special agricultural land system, where farmers only have contract rights of land. However, big reallocation should be heavily restricted to guarantee the investment incentive effect of land titling.

Suggested Citation

  • Hong, Weijie & Luo, Biliang & Hu, Xinyan, 2020. "Land titling, land reallocation experience, and investment incentives: Evidence from rural China," Land Use Policy, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:lauspo:v:90:y:2020:i:c:s0264837718314030
    DOI: 10.1016/j.landusepol.2019.104271
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    More about this item

    Keywords

    Land titling; Land rights reallocation; Investment incentive; China;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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