IDEAS home Printed from https://ideas.repec.org/p/ags/aaea26/404408.html

Back to Property Rights: The Impact of Land Tenure Insecurity on Cropland Abandonment

Author

Listed:
  • Zheng, Linyi
  • Zhang, Jiahao
  • Zhao, Hanqi
  • Su, Liufang

Abstract

Tenure security exerts a profound influence on factor allocation efficiency and the behavioral decisions of economic agents. Nevertheless, few scholars have examined the quantitative relationship between land tenure insecurity and farmers’ cropland abandonment behavior—despite the fact that rural China is currently confronting both challenges concurrently. To address this research gap, this study adopts a panel random effects model, utilizing three waves of panel data from the China Rural Household Panel Survey (2015–2019), and measures land tenure insecurity through farmers' perceived security regarding land certification and titling, to empirically investigate the impact of land tenure insecurity on cropland abandonment. The results show that land tenure insecurity significantly exacerbates cropland abandonment. The primary reason is that land tenure insecurity suppresses agricultural capital investment, reduces agricultural labor input, and impedes land transfer, thereby accelerating the spread of cropland abandonment. However, the adverse effect is more pronounced among higher-income farmers and older farmers, while lower-income farmers and younger farmers remain largely unaffected. Furthermore, formal institutions—exemplified by land certification—help mitigate the adverse effects of land tenure insecurity on cropland abandonment, while informal institutions, represented by village regulations, prove ineffective. These findings hold significant reference value for developing countries grappling with the dual challenges of land tenure insecurity and cropland abandonment.

Suggested Citation

  • Zheng, Linyi & Zhang, Jiahao & Zhao, Hanqi & Su, Liufang, 2026. "Back to Property Rights: The Impact of Land Tenure Insecurity on Cropland Abandonment," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404408, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea26:404408
    DOI: 10.22004/ag.econ.404408
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/404408/files/177488_197163_115232_Back_to_property_rights_The_impact_of_land_tenure_insecurity_on_cropland_abandonment.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.404408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dwayne Benjamin & Loren Brandt, 2002. "Property rights, labour markets, and efficiency in a transition economy: the case of rural China," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 689-716, November.
    2. Barzel, Yoram, 1974. "A Theory of Rationing by Waiting," Journal of Law and Economics, University of Chicago Press, vol. 17(1), pages 73-95, April.
    3. Alain de Janvry & Kyle Emerick & Marco Gonzalez-Navarro & Elisabeth Sadoulet, 2015. "Delinking Land Rights from Land Use: Certification and Migration in Mexico," American Economic Review, American Economic Association, vol. 105(10), pages 3125-3149, October.
    4. Gao, Xuwen & Shi, Xinjie & Fang, Shile, 2021. "Property rights and misallocation: Evidence from land certification in China," World Development, Elsevier, vol. 147(C).
    5. Jean‐Louis Van Gelder, 2009. "Legal Tenure Security, Perceived Tenure Security and Housing Improvement in Buenos Aires: An Attempt towards Integration," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(1), pages 126-146, March.
    6. Linyi Zheng, 2024. "Those with constant property rights have perseverance: China’s land tenure reform promotes environment-friendly farming practices," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    7. Linyi Zheng & Liufang Su & Songqing Jin, 2023. "Reducing land fragmentation to curb cropland abandonment: Evidence from rural China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 355-373, September.
    8. Tasso Adam & Loren Brandt & Chaoran Chen & Diego Restuccia & Xiaoyun Wei, 2024. "Land Security and Mobility Frictions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1941-1987.
    9. Zhou, Nan & Cheng, Wenli & Zhang, Longyao, 2022. "Land rights and investment incentives: Evidence from China’s Latest Rural Land Titling Program," Land Use Policy, Elsevier, vol. 117(C).
    10. Xu, Dingde & Deng, Xin & Huang, Kai & Liu, Yi & Yong, Zhuolin & Liu, Shaoquan, 2019. "Relationships between labor migration and cropland abandonment in rural China from the perspective of village types," Land Use Policy, Elsevier, vol. 88(C).
    11. Linyi Zheng, 2024. "Does off-farm work induce farmland abandonment? Evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 16(4), pages 664-682, May.
    12. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    13. Ayelech Kidie Mengesha & Reinfried Mansberger & Doris Damyanovic & Gernot Stoeglehner, 2019. "Impact of Land Certification on Sustainable Land Use Practices: Case of Gozamin District, Ethiopia," Sustainability, MDPI, vol. 11(20), pages 1-21, October.
    14. Feder, Gershon & Feeny, David, 1991. "Land Tenure and Property Rights: Theory and Implications for Development Policy," The World Bank Economic Review, World Bank, vol. 5(1), pages 135-153, January.
    15. Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2011. "Land tenure differences and investment in land improvement measures: Theoretical and empirical analyses," Journal of Development Economics, Elsevier, vol. 96(1), pages 66-78, September.
    16. Chaoran Chen, 2017. "Untitled Land, Occupational Choice, and Agricultural Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 91-121, October.
    17. Lovo, Stefania, 2016. "Tenure Insecurity and Investment in Soil Conservation. Evidence from Malawi," World Development, Elsevier, vol. 78(C), pages 219-229.
    18. Maëlys de La Rupelle & Deng Quheng & Li Shi & Thomas Vendryes, 2009. "Land rights insecurity and temporary migration in rural China," Working Papers halshs-00575041, HAL.
    19. Wang, Hui & Riedinger, Jeffrey & Jin, Songqing, 2015. "Land documents, tenure security and land rental development: Panel evidence from China," China Economic Review, Elsevier, vol. 36(C), pages 220-235.
    20. Ho, Peter, 2005. "Institutions in Transition: Land Ownership, Property Rights, and Social Conflict in China," OUP Catalogue, Oxford University Press, number 9780199280698.
    21. Deininger, Klaus & Jin, Songqing, 2009. "Securing property rights in transition: Lessons from implementation of China's rural land contracting law," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 22-38, May.
    22. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    23. Hanan G. Jacoby & Guo Li & Scott Rozelle, 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, American Economic Association, vol. 92(5), pages 1420-1447, December.
    24. Klaus Deininger & Daniel Ayalew Ali & Tekie Alemu, 2011. "Impacts of Land Certification on Tenure Security, Investment, and Land Market Participation: Evidence from Ethiopia," Land Economics, University of Wisconsin Press, vol. 87(2), pages 312-334.
    25. Prishchepov, Alexander V. & Radeloff, Volker C. & Baumann, Matthias & Kuemmerle, Tobias & Müller, Daniel, 2012. "Effects of institutional changes on land use: Agricultural land abandonment during the transition from state-command to market-driven economies in post-Soviet Eastern Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(2), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lei Xu & Shixiang Chen & Shuliu Tian, 2022. "The Mechanism of Land Registration Program on Land Transfer in Rural China: Considering the Effects of Livelihood Security and Agricultural Management Incentives," Land, MDPI, vol. 11(8), pages 1-25, August.
    2. Tongwei Qiu & Xianlei Ma & Biliang Luo, 2022. "Are private property rights better? evidence from the marketization of land rentals in rural China," Economic Change and Restructuring, Springer, vol. 55(2), pages 875-902, May.
    3. Cheng, Yifan & Yu, Jianyu & Min, Shi & Wang, Xiaobing, 2024. "The effects of land titling on intergenerational transfers in rural China," Journal of Economic Behavior & Organization, Elsevier, vol. 225(C), pages 228-251.
    4. Liu, Shouying & Ma, Sen & Yin, Lijuan & Zhu, Jiong, 2023. "Land titling, human capital misallocation, and agricultural productivity in China," Journal of Development Economics, Elsevier, vol. 165(C).
    5. Qian, Chen & Antonides, Gerrit & Heerink, Nico & Zhu, Xueqin & Ma, Xianlei, 2022. "An economic-psychological perspective on perceived land tenure security: Evidence from rural eastern China," Land Use Policy, Elsevier, vol. 120(C).
    6. Xianlei Ma & Justus Wesseler & Nico Heerink & Futian Qu, 2013. "Land Tenure Reforms and Land Conservation Investments in China ¨C What Does Real Option Value Theory Tell Us?," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 19-33, August.
    7. Zhao, Xiaoxue, 2020. "Land and labor allocation under communal tenure: Theory and evidence from China," Journal of Development Economics, Elsevier, vol. 147(C).
    8. Xianlei Ma & Nico Heerink & Ekko Ierland & Xiaoping Shi, 2016. "Land tenure insecurity and rural-urban migration in rural China," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 383-406, June.
    9. Linyi Zheng, 2024. "Those with constant property rights have perseverance: China’s land tenure reform promotes environment-friendly farming practices," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    10. Wang, Hui & Riedinger, Jeffrey & Jin, Songqing, 2015. "Land documents, tenure security and land rental development: Panel evidence from China," China Economic Review, Elsevier, vol. 36(C), pages 220-235.
    11. Bu, Di & Liao, Yin, 2022. "Land property rights and rural enterprise growth: Evidence from land titling reform in China," Journal of Development Economics, Elsevier, vol. 157(C).
    12. Ali, Daniel Ayalew & Deininger, Klaus & Mahofa, Godfrey & Nyakulama, Rhona, 2021. "Sustaining land registration benefits by addressing the challenges of reversion to informality in Rwanda," Land Use Policy, Elsevier, vol. 110(C).
    13. Li, Chengzheng & Xie, Huiru & Huang, Zhiwen & Gai, Qingen, 2025. "Property rights, resource reallocation and welfare effects: Evidence from a land certification programme," Land Use Policy, Elsevier, vol. 154(C).
    14. Abebaw Andarge Gedefaw, 2023. "Analysis of the Contribution of Land Registration to Sustainable Land Management in East Gojjam Zone, Ethiopia," Land, MDPI, vol. 12(6), pages 1-21, May.
    15. Yang, Fanzheng & Hou, Lingling & Xia, Fang, 2024. "Intergenerational altruism, pessimism bias on tenure insecurity, and sustainable land use: Evidence from household grassland management in China," Ecological Economics, Elsevier, vol. 215(C).
    16. Ma, Meilin, 2023. "Interdependent investments in attached and movable assets under insecure land rights," China Economic Review, Elsevier, vol. 77(C).
    17. Wang, Yahui & Li, Xiubin & Li, Wei & Tan, Minghong, 2018. "Land titling program and farmland rental market participation in China: Evidence from pilot provinces," Land Use Policy, Elsevier, vol. 74(C), pages 281-290.
    18. Gao, Xuwen & Shi, Xinjie & Fang, Shile, 2021. "Property rights and misallocation: Evidence from land certification in China," World Development, Elsevier, vol. 147(C).
    19. Yong Zhan & Xiaoyi Zhan & Min Wu, 2025. "Institutional Change and Agricultural Modernization: The Impact of Land Certification on Agricultural Technology Adoption," Land, MDPI, vol. 14(7), pages 1-20, July.
    20. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 5(01), pages 1-22, September.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea26:404408. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.