IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/126467.html
   My bibliography  Save this paper

The impact of land security and input allocation on farm household income

Author

Listed:
  • Zhang, Yanjie
  • Wang, Xiaobing
  • Brümmer, Bernhard
  • Yu, Xiaohua

Abstract

China’s rural reforms expose farm households to the risk of administrative land reallocation and adjustment. The possibility of land reallocation gives rise to the problem of tenure insecurity which reduces farm households' incentives to invest in the land and to use the labor forces efficiently and hence negatively affect farmers' income. In this study, the normalized quadratic profit function is used to analyze profit maximization problems in farm households in the Zhejiang and Hubei provinces of China from 1995 to 2002. Additional variables have been introduced to capture the effects of a series of institutional environment and factor market constraints, including land insecurity, crop cultivation structure, labor input and capital input allocations between agricultural and non-agricultural productions. Our results indicate that, although the official controls on rural labor mobility have been relaxed, the rural labor market has not yet reached the optimal level, and a less-than-optimal level of labor input is devoted to non-agriclutural activities for farm households in both provinces. Furthermore, the negative effects of land tenure insecurity on farmhousehold income through the interactions with the other three input allocations are observed in the Hubei province.

Suggested Citation

  • Zhang, Yanjie & Wang, Xiaobing & Brümmer, Bernhard & Yu, Xiaohua, 2012. "The impact of land security and input allocation on farm household income," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126467, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126467
    DOI: 10.22004/ag.econ.126467
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/126467/files/paper%20for%20IAAE%202012%20_with%20title%20page_.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.126467?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. Bowlus, Audra J. & Sicular, Terry, 2003. "Moving toward markets? Labor allocation in rural China," Journal of Development Economics, Elsevier, vol. 71(2), pages 561-583, August.
    2. Liu, Shouying & Carter, Michael R. & Yao, Yang, 1998. "Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform," World Development, Elsevier, vol. 26(10), pages 1789-1806, October.
    3. Yanjie Zhang & Xiaobing Wang & Thomas Glauben & Bernhard Brümmer, 2011. "The impact of land reallocation on technical efficiency: evidence from China," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 495-507, July.
    4. 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.
    5. Swinnen, Johan F.M. & Rozelle, Scott, 2006. "From Marx and Mao to the Market: The Economics and Politics of Agricultural Transition," OUP Catalogue, Oxford University Press, number 9780199288915.
    6. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    7. BROSIG, Stephan & GLAUBEN, Thomas & Herzfeld, Thomas & WANG, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," China Economic Review, Elsevier, vol. 20(2), pages 360-371, June.
    8. Martin Ravallion & Dominique van de Walle, 2008. "Land in Transition : Reform and Poverty in Rural Vietnam," World Bank Publications - Books, The World Bank Group, number 6433, December.
    9. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    10. Tao Yang, Dennis, 2004. "Education and allocative efficiency: household income growth during rural reforms in China," Journal of Development Economics, Elsevier, vol. 74(1), pages 137-162, June.
    11. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
    12. Kung, James Kai-sing, 2000. "Common Property Rights and Land Reallocations in Rural China: Evidence from a Village Survey," World Development, Elsevier, vol. 28(4), pages 701-719, April.
    13. Deininger, Klaus & Feder, Gershon, 2001. "Land institutions and land markets," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 6, pages 288-331, Elsevier.
    14. 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.
    15. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2008. "Labor market participation of Chinese agricultural households: Empirical evidence from Zhejiang province," Food Policy, Elsevier, vol. 33(4), pages 329-340, August.
    16. Shingo Kimura & Keijiro Otsuka & Tetsushi Sonobe & Scott Rozelle, 2011. "Efficiency of Land Allocation through Tenancy Markets: Evidence from China," Economic Development and Cultural Change, University of Chicago Press, vol. 59(3), pages 485-510.
    17. 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.
    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. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    2. Jia, Lili & Petrick, Martin, 2014. "How does land fragmentation affect off-farm labor supply: panel data evidence from China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 369-380.
    3. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    4. Jia, Lili & Petrick, Martin, 2011. "How land fragmentation affects off-farm labor supply in China: Evidence from household panel data," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114522, German Association of Agricultural Economists (GEWISOLA).
    5. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    6. Wang, Xiaobing & Yu, Xiaohua, 2011. "Scale Effects, Technical Efficiency and Land Lease in China," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115736, European Association of Agricultural Economists.
    7. Che, Yi, 2009. "Mismatch: land reallocations, recovery land rental and land rental market development in rural China," MPRA Paper 39794, University Library of Munich, Germany.
    8. Wang, Xiaobing & Yamauchi, Futoshi & Huang, Jikun & Rozelle, Scott, 2020. "What constrains mechanization in Chinese agriculture? Role of farm size and fragmentation," China Economic Review, Elsevier, vol. 62(C).
    9. Licheng Xu & Xiaodong Du, 2022. "Land certification, rental market participation, and household welfare in rural China," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 52-71, January.
    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. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
    12. Hoken, Hisatoshi, 2017. "Development of off-farm employment and its determinants in rural China," IDE Discussion Papers 633, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Zhang, Yanjie & Wang, Xiaobing, 2009. "Land Reallocation and Its Impacts on Technical Efficiency --Evidence from China’s Agricultural Production," 2009 Conference, August 16-22, 2009, Beijing, China 51954, International Association of Agricultural Economists.
    14. Xinjie Shi & Xuwen Gao & Shile Fang, 2022. "Land System Reform in Rural China: Path and Mechanism," Land, MDPI, vol. 11(8), pages 1-15, August.
    15. Min, Shi & Waibel, Hermann & Huang, Jikun, 2017. "Smallholder participation in the land rental market in a mountainous region of Southern China: Impact of population aging, land tenure security and ethnicity," Land Use Policy, Elsevier, vol. 68(C), pages 625-637.
    16. Han Zhang & Jari Kuuluvainen & Hongqiang Yang & Yi Xie & Can Liu, 2017. "The Effect of Off-Farm Employment on Forestland Transfers in China: A Simultaneous-Equation Tobit Model Estimation," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    17. Kung, James Kai-sing & Shimokawa, Satoru, 2012. "Land Reallocations, Passive Land Rental, and the Development of Rental Markets in Rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125099, International Association of Agricultural Economists.
    18. Xu, Licheng & Du, Xiaodong, 2020. "Land certification, rental market participation, and income dynamics in rural China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304247, Agricultural and Applied Economics Association.
    19. Ma, Meilin, 2017. "Earthbound Labor and Incomplete Exit from Farming in China: Multiple Distortions and Nonseparable Decisions," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258414, Agricultural and Applied Economics Association.
    20. Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.

    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:iaae12:126467. 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/iaaeeea.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.