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The effect of off-farm employment on the decisions of households to rent out and rent in cultivated land in China

Author

Listed:
  • Jikun Huang
  • Liangliang Gao
  • Scott Rozelle

Abstract

Purpose - Developing nations need good cultivated land rental markets to foster rational resource use and to enhance productivity and equity. Can cultivated land rental markets emerge in the face of rapidly developing off-farm labor markets? The purpose of this paper is to measure the correlation between the emergence of off-farm employment and cultivated land rental in China. Design/methodology/approach - Based on a panel data from 2000 and 2008, the authors constructed econometric models to identify the impact of off-farm employment on the decisions of households to rent out and rent in cultivated land. Findings - This paper finds that the emergence of off-farm employment has significant and positive impacts on stimulating household to rent out cultivated land. The effect is less prominent for renting-in decisions. Originality/value - The paper empirically estimates the impacts of off-farm employment on cultivated land rent markets based on a unique panel data set from a national representative sample.

Suggested Citation

  • Jikun Huang & Liangliang Gao & Scott Rozelle, 2012. "The effect of off-farm employment on the decisions of households to rent out and rent in cultivated land in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(1), pages 5-17, January.
  • Handle: RePEc:eme:caerpp:v:4:y:2012:i:1:p:5-17
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    References listed on IDEAS

    as
    1. 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 627-627, December.
    2. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution of China's Rural Labor Markets During the Reforms," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 329-353, June.
    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 Kevane, 1996. "Agrarian Structure and Agricultural Practice: Typology and Application to Western Sudan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 236-245.
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    9. Otsuka, Keijiro, 2007. "Efficiency and Equity Effects of Land Markets," Handbook of Agricultural Economics, Elsevier.
    10. Daniel H. Rosen & Scott Rozelle & Jikan Huang, 2004. "Roots of Competitiveness: China's Evolving Agriculture Interests," Peterson Institute Press: All Books, Peterson Institute for International Economics, number pa72.
    11. 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.
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