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Development of Groundwater Markets in China: A Glimpse into Progress to Date


  • Zhang, Lijuan
  • Wang, Jinxia
  • Huang, Jikun
  • Rozelle, Scott


Summary The overall goal of the paper is to better understand the development of groundwater markets in northern China. Field survey shows that groundwater markets in northern China have emerged and are developing rapidly. Developing in a number of ways that make them appear somewhat similar to markets that are found in South Asia, groundwater markets in northern China also differ by the impersonality and case bases. The privatization of tubewells is one of the most important driving factors encouraging the development of groundwater markets. Increasing water and land scarcity are also major determinants that induce the development of groundwater markets.

Suggested Citation

  • Zhang, Lijuan & Wang, Jinxia & Huang, Jikun & Rozelle, Scott, 2008. "Development of Groundwater Markets in China: A Glimpse into Progress to Date," World Development, Elsevier, vol. 36(4), pages 706-726, April.
  • Handle: RePEc:eee:wdevel:v:36:y:2008:i:4:p:706-726

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    References listed on IDEAS

    1. Wang, J. & Huang, J. & Blanke, A. & Huang, Q. & Rozelle, S., 2007. "The development, challenges and management of groundwater in rural China," IWMI Books, Reports H040041, International Water Management Institute.
    2. Morley Gunderson, 1974. "Training Subsidies and Disadvantaged Workers: Regression with a Limited Dependent Variable," Canadian Journal of Economics, Canadian Economics Association, vol. 7(4), pages 611-624, November.
    3. Sharma, Purushottam & Sharma, R.C., 2004. "Groundwater Markets Across Climatic Zones: A Comparative Study of Arid and Semi-Arid Zones of Rajasthan," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 59(1).
    4. Kajisa, Kei & Sakurai, Takeshi, 2003. "Determinants of Groundwater Price under Bilateral Bargaining with Multiple Modes of Contracts: A Case from Madhya Pradesh, India," Japanese Journal of Rural Economics, Agricultural Economics Society of Japan (AESJ), vol. 5.
    5. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    6. Meinzen-Dick, Ruth Suseela, 1996. "Groundwater markets in Pakistan: participation and productivity," Research reports 105, International Food Policy Research Institute (IFPRI).
    7. Hanan G. Jacoby & Rinku Murgai & Saeed Ur Rehman, 2004. "Monopoly Power and Distribution in Fragmented Markets: The Case of Groundwater," Review of Economic Studies, Oxford University Press, vol. 71(3), pages 783-808.
    8. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    9. Wang, Jinxia & Huang, Jikun & Rozelle, Scott, 2005. "Evolution of tubewell ownership and production in the North China Plain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), June.
    10. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
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    Cited by:

    1. Zhang, Lijuan & Wang, Jinxia & Huang, Jikun & Huang, Qiuqiong & Rozelle, Scott, 2010. "Access to groundwater and agricultural production in China," Agricultural Water Management, Elsevier, vol. 97(10), pages 1609-1616, October.
    2. Zhang, Lei & Zhu, Xueqin & Heerink, Nico & Shi, Xiaoping, 2014. "Does output market development affect irrigation water institutions? Insights from a case study in northern China," Agricultural Water Management, Elsevier, vol. 131(C), pages 70-78.
    3. Zhang, Lei & Heerink, Nico & Dries, Liesbeth & Shi, Xiaoping, 2013. "Water users associations and irrigation water productivity in northern China," Ecological Economics, Elsevier, vol. 95(C), pages 128-136.
    4. Khair, Syed M. & Mushtaq, Shahbaz & Culas, Richard J. & Hafeez, Mohsin, 2012. "Groundwater markets under the water scarcity and declining watertable conditions: The upland Balochistan Region of Pakistan," Agricultural Systems, Elsevier, vol. 107(C), pages 21-32.
    5. Qu, Futian & Kuyvenhoven, Arie & Shi, Xiaoping & Heerink, Nico, 2011. "Sustainable natural resource use in rural China: Recent trends and policies," China Economic Review, Elsevier, vol. 22(4), pages 444-460.

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