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Property Rights, Land Misallocation, and Agricultural Efficiency in China
[Misallocation, Selection and Productivity: A Quantitative Analysis with Panel Data from China]

Author

Listed:
  • Amalavoyal Chari
  • Elaine M Liu
  • Shing-Yi Wang
  • Yongxiang Wang

Abstract

This article examines the impact of a property rights reform in rural China that allowed farmers to lease out their land. We find the reform led to increases in land rental activity in rural households. Our results indicate that the formalization of leasing rights resulted in a redistribution of land toward more-productive farmers. Consequently, output and aggregate productivity increased by 8 and 10, respectively. We also find that the reform increased the responsiveness of land allocation across crops to changes in crop prices.

Suggested Citation

  • Amalavoyal Chari & Elaine M Liu & Shing-Yi Wang & Yongxiang Wang, 2021. "Property Rights, Land Misallocation, and Agricultural Efficiency in China [Misallocation, Selection and Productivity: A Quantitative Analysis with Panel Data from China]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(4), pages 1831-1862.
    • Handle: RePEc:oup:restud:v:88:y:2021:i:4:p:1831-1862.
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    File URL: http://hdl.handle.net/10.1093/restud/rdaa072
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    More about this item

    Keywords

    Land misallocation; Property rights; Agricultural efficiency; 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

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