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Policy impacts under alternative land market regimes in rural China

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  • Kleinwechter, Ulrich
  • Grethe, Harald

Abstract

In this paper we apply a simulation model of a village economy in Guizhou province, China, to assess impacts of trade reform at the household and the village level under alternative land market regimes. Putting special emphasis on the modeling of household migration a trade reform scenario is simulated with and without the existence of a land rental market in the village. Significant impacts of the land market on the policy outcome regarding household production, income and welfare are found. The possibility to trade land within the village leads to increasing specialization into agriculture and migration among the households as a response to the policy shock. In a situation with a land market, incomes of households which expand agricultural production are less negatively affected by trade reform than incomes of households which migration more. At the village level, a land market does not influence the poverty outcome of the reform but reduces its inequality enhancing impact. Village migration and exports of agricultural outputs increase.

Suggested Citation

  • Kleinwechter, Ulrich & Grethe, Harald, 2012. "Policy impacts under alternative land market regimes in rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125860, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:125860
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    References listed on IDEAS

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    More about this item

    Keywords

    China; Regional Migration; Agricultural Household Model; Land Markets; Poverty; Inequality; Computable General Equilibrium; Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Food Security and Poverty; International Relations/Trade; Land Economics/Use; Q12; Q15; C68; R23;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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