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Securing property rights in transition: lessons from implementation of China's rural land contracting law

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  • Deininger, Klaus
  • Jin, Songqing

Abstract

This paper is motivated by the emphasis on secure property rights as a determinant of economic development in recent literature. The authors use village and household level information from about 800 villages throughout China to explore whether legal reform increased protection of land rights against unauthorized reallocation or expropriation with below-average compensation by the state. The analysis provides nation-wide evidence on a sensitive topic. The authors find positive impacts, equivalent to increasing land values by 30 percent, of reform even in the short term. Reform originated in villages where democratic election of leaders ensured a minimum level of accountability, pointing toward complementarity between good governance and legal reform. The paper explores the implications for situations where individuals and groups hold overlapping rights to land.

Suggested Citation

  • Deininger, Klaus & Jin, Songqing, 2007. "Securing property rights in transition: lessons from implementation of China's rural land contracting law," Policy Research Working Paper Series 4447, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4447
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    Cited by:

    1. 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.
    2. A.V. Chari & Elaine Liu & Shing-Yi Wang & Yongxiang Wang, 2017. "Property Rights, Land Misallocation and Agricultural Efficiency in China," Working Papers 2017-091, Human Capital and Economic Opportunity Working Group.
    3. repec:gam:jsusta:v:9:y:2017:i:11:p:1961-:d:116595 is not listed on IDEAS
    4. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2008. "Impacts of land certification on tenure security, investment, and land markets : evidence from Ethiopia," Policy Research Working Paper Series 4764, The World Bank.
    5. Christopher Ksoll & Chantal Toledo & Seth Morgan & Anca Dumitrescu & Kristen Velyvis, "undated". "Evaluation of the Burkina Faso Agriculture Development Project: Design Report," Mathematica Policy Research Reports 1eb478039edc4b0eaaa6144ba, Mathematica Policy Research.
    6. Lili Jia & Martin Petrick, 2014. "How does land fragmentation affect off-farm labor supply: panel data evidence from China," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 369-380, May.
    7. Mu, Ren & van de Walle, Dominique, 2011. "Left behind to farm? Women's labor re-allocation in rural China," Labour Economics, Elsevier, vol. 18(S1), pages 83-97.
    8. 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.
    9. Castañeda Dower, Paul & Pfutze, Tobias, 2013. "Specificity of control: The case of Mexico's ejido reform," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 13-33.
    10. Giles,John T. & Mu,Ren, 2014. "Village political economy, land tenure insecurity, and the rural to urban migration decision : evidence from China," Policy Research Working Paper Series 7080, The World Bank.
    11. Mullan, Katrina & Grosjean, Pauline & Kontoleon, Andreas, 2011. "Land Tenure Arrangements and Rural-Urban Migration in China," World Development, Elsevier, vol. 39(1), pages 123-133, January.
    12. 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.
    13. Deininger, Klaus & Savastano, Sara & Xia, Fang, 2017. "Smallholders’ land access in Sub-Saharan Africa: A new landscape?," Food Policy, Elsevier, vol. 67(C), pages 78-92.
    14. 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).
    15. de Brauw, Alan & Mu, Ren, 2011. "Migration and the overweight and underweight status of children in rural China," Food Policy, Elsevier, vol. 36(1), pages 88-100, February.
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    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(1), September.
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    23. Ngai, L. Rachel & Pissarides, Christopher & Wang, Jin, 2018. "China's mobility barriers and employment allocations," LSE Research Online Documents on Economics 87619, London School of Economics and Political Science, LSE Library.

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    Keywords

    Common Property Resource Development; Municipal Housing and Land; Access to Finance; Political Economy; Land and Real Estate Development;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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