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

Land ownership and productivity in early twentieth-century China: the role of incentives

  • Ming-Hsuan Lee
Registered author(s):

    Purpose – This paper seeks to use data from China between 1929 and 1933 and provides new empirical evidence to the debate over the impact of land ownership and land-renting systems on agricultural productivity. Design/methodology/approach – The authors estimate the OLS regression to determine the relationship between land ownership (and land-renting systems) and farmers' productivity. Findings – The findings suggest that land ownership was not a major factor in determining farmers' productivity; instead, agricultural infrastructures and institutions had the greatest influence on agricultural productivity. Furthermore, different renting systems generated different impacts on farmers' behavior: sharecropping reduced farmers' productivity while fixed rental contracts had no significant impact on farmers' productivity. Practical implications – This paper has two important policy implications for developing countries. First, agricultural policy that aims to raise agricultural productivity should focus more on improving agricultural infrastructures and institutions than on blindly supporting land privatization. Second, policymakers should promote fixed rental contracts over share contracts because fixed rental contracts were shown to have a smaller adverse impact on farmers' incentives. Originality/value – This paper uses data from China and provides new evidence on the relative importance of land ownership and agricultural infrastructures/institutions in agricultural production. China is a country with a long agricultural history and a long-standing well-developed tenancy system. The case of China may therefore provide answers to policymakers in other developing countries. JEL classification: O1, N5

    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.emeraldinsight.com/journals.htm?issn=1446-8956&volume=10&issue=2&articleid=1937793&show=abstract
    Download Restriction: Cannot be freely downloaded

    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 Emerald Group Publishing in its journal International Journal of Development Issues.

    Volume (Year): 10 (2011)
    Issue (Month): 2 (July)
    Pages: 141-153

    as
    in new window

    Handle: RePEc:eme:ijdipp:v:10:y:2011:i:2:p:141-153
    Contact details of provider: Web page: http://www.emeraldinsight.com

    Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Web: http://www.emeraldinsight.com/ijdi.htm Email:


    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. Newbery, D M G, 1974. "Cropsharing Tenancy in Agriculture: Comment," American Economic Review, American Economic Association, vol. 64(6), pages 1060-66, December.
    2. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
    3. Gavian, Sarah & Ehui, Simeon, 1999. "Measuring the production efficiency of alternative land tenure contracts in a mixed crop-livestock system in Ethiopia," Agricultural Economics, Blackwell, vol. 20(1), pages 37-49, January.
    4. Boardman, Anthony E & Vining, Aidan R, 1989. "Ownership and Performance in Competitive Environments: A Comparison of the Performance of Private, Mixed, and State-Owned Enterprises," Journal of Law and Economics, University of Chicago Press, vol. 32(1), pages 1-33, April.
    5. McConnell, John J. & Servaes, Henri, 1990. "Additional evidence on equity ownership and corporate value," Journal of Financial Economics, Elsevier, vol. 27(2), pages 595-612, October.
    6. Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation : An empirical analysis," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 293-315, January.
    7. D. Gale Johnson, 1950. "Resource Allocation under Share Contracts," Journal of Political Economy, University of Chicago Press, vol. 58, pages 111.
    8. Demsetz, Harold & Lehn, Kenneth, 1985. "The Structure of Corporate Ownership: Causes and Consequences," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1155-77, December.
    9. Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, 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:eme:ijdipp:v:10:y:2011:i:2:p:141-153. 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: (Virginia Chapman)

    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.