Land Reallocation and Its Impacts on Technical Efficiency --Evidence from China’s Agricultural Production
China’s economic reforms make the farmers face the risk of land reallocation and adjustment, raising the questions about the impact of land reallocation on farm productivity and efficiency. Deep understanding what determines land reallocation, whether and to what extent farm productivity and efficiency are affected by the frequency of land reallocation could help policy makers introduce better targeted rural development policies. The aim of this study is first to explore the determinants of land reallocation, and then analyze how land reallocation influences productivity and efficiency in agricultural production. This study is based on panel data set over 1995-2002 from rural households in Hubei and Yunnan provinces. Our results indicate that the likelihood of land reallocation is influenced by the opportunity of off-farm employment and the geographic characteristics and location of the village. The development of land rental market is substitute of land reallocation in optimizing the allocation of land resource. Average technical efficiency was found to be 72%. Farms with high variability in farm revenue were found to be more technically efficient than farms with low revenue variability. The predicted probability of land reallocation was statistically significant among factors affecting farm productivity and efficiency. In other words, we do find the systematic difference in farm productivity and technical efficiency between farmers have been reallocated land or not during the period of land tenure.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
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.:
- Shenggen Fan, 1991.
"Effects of Technological Change and Institutional Reform on Production Growth in Chinese Agriculture,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 73(2), pages 266-275.
- Fan, Shenggen, 1990. "Effects Of Technological Change And Institutional Reform On Production Growth In Chinese Agriculture," Staff Papers 13454, University of Minnesota, Department of Applied Economics.
- Li, Guo & Rozelle, Scott & Brandt, Loren, 1998.
"Tenure, land rights, and farmer investment incentives in China,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 19(1-2), September.
- Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics, Blackwell, vol. 19(1-2), pages 63-71, September.
- Yang Yao, 2000. "The Development of the Land Lease Market in Rural China," Land Economics, University of Wisconsin Press, vol. 76(2), pages 252-266.
- Glauben, Thomas & Lu, Wencong C. & Brümmer, Bernhard, 2003.
"Policy Reform And Productivity Change In Chinese Agriculture: A Distance Function Approach,"
2003 Annual Meeting, August 16-22, 2003, Durban, South Africa
25896, International Association of Agricultural Economists.
- Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
- Brümmer, Bernhard & Glauben, Thomas & Lu, Wencong C., 2002. "Policy Reform and Productivity Change in Chinese Agriculture: A Distance Function Approach," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24779, European Association of Agricultural Economists.
- Liu, Shouying & Carter, Michael R. & Yao, Yang, 1998.
"Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform,"
Elsevier, vol. 26(10), pages 1789-1806, October.
- Shouying Liu & MICHAEL R. CARTER & Yang Yao, 1996. "Dimensions and Diversity of Property Rights in Rural China: Delimmas on the Road to Further Reform," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 395, Wisconsin-Madison Agricultural and Applied Economics Department.
- Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
- Hung-jen Wang & Peter Schmidt, 2002.
"One-Step and Two-Step Estimation of the Effects of Exogenous Variables on Technical Efficiency Levels,"
Journal of Productivity Analysis,
Springer, vol. 18(2), pages 129-144, September.
- Wang, Hung-jen & Schmidt, Peter, 2001. "One-step and two-step estimation of the effects of exogenous variables on technical efficiency levels," MPRA Paper 31075, University Library of Munich, Germany, revised Mar 2002.
- Jikun Huang & Scott Rozelle, 1995. "Environmental Stress and Grain Yields in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 853-864.
- 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.
- Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51954. 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: (AgEcon Search)
If references are entirely missing, you can add them using this form.