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Do land markets improve land-use efficiency? evidence from Jiangsu, China

Author

Listed:
  • Ziming Liu
  • Lan Zhang
  • Jens Rommel
  • Shuyi Feng

Abstract

Inefficient use of scarce and fragmented land challenges the sustainability of agriculture. Land markets may improve land-use efficiency. In recent years, China has employed various instruments to promote land markets. This paper investigates whether land markets affect households’ land-use efficiency, based on data from 1,202 farm households in Jiangsu Province. The measure of land-use efficiency was derived from a stochastic frontier production function, and a control function approach was employed to correct for selection bias. The results indicated that many households are using land inefficiently. While renting in land increases land-use efficiency, it is not affected by renting out land, implying that households are not giving up land for efficiency gains. We also provide suggestive evidence that the positive effect of renting in land results from abundant agricultural labour due to labour market failure.

Suggested Citation

  • Ziming Liu & Lan Zhang & Jens Rommel & Shuyi Feng, 2020. "Do land markets improve land-use efficiency? evidence from Jiangsu, China," Applied Economics, Taylor & Francis Journals, vol. 52(3), pages 317-330, January.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:3:p:317-330
    DOI: 10.1080/00036846.2019.1645286
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    Cited by:

    1. Yang Bai & Wei Zhou & Yanjun Guan & Xue Li & Baohua Huang & Fengchun Lei & Hong Yang & Wenmin Huo, 2020. "Evolution of Policy Concerning the Readjustment of Inefficient Urban Land Use in China Based on a Content Analysis Method," Sustainability, MDPI, vol. 12(3), pages 1-21, January.
    2. Hongyun Zheng & Wanglin Ma, 2021. "The role of resource reallocation in promoting total factor productivity growth: Insights from China’s agricultural sector," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2350-2371, November.
    3. Liu, Ziming & Li, Jia & Rommel, Jens & Feng, Shuyi, 2020. "Health impacts of cooking fuel choice in rural China," Energy Economics, Elsevier, vol. 89(C).
    4. Jonathan R. McFadden & Alicia Rosburg & Eric Njuki, 2022. "Information inputs and technical efficiency in midwest corn production: evidence from farmers' use of yield and soil maps," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 589-612, March.
    5. Liu, Ziming & Yu, Lu, 2020. "Stay or Leave? The Role of Air Pollution in Urban Migration Choices," Ecological Economics, Elsevier, vol. 177(C).

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