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Property rights, land misallocation and agricultural efficiency in China

Author: A V Chari; Elaine Meichen Liu; Shing-Yi Wang; Yongxiang Wang; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2017.
Series: Working paper series (National Bureau of Economic Research), no. 24099.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This paper examines the impact of a property rights reform in rural China that allowed farmers to lease out their land. We find the reform led to increases in land rental activity in rural households. Consistent with a model of transaction costs in land markets, our results indicate that the formalization of leasing rights resulted in a redistribution of land toward more productive farmers. Consequently, the  Read more...
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Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: A V Chari; Elaine Meichen Liu; Shing-Yi Wang; Yongxiang Wang; National Bureau of Economic Research,
OCLC Number: 1015252426
Notes: "December 2017"
Description: 1 online resource (58 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 24099.
Responsibility: A. V. Chari, Elaine M. Liu, Shing-Yi Wang, Yongxiang Wang.

Abstract:

This paper examines the impact of a property rights reform in rural China that allowed farmers to lease out their land. We find the reform led to increases in land rental activity in rural households. Consistent with a model of transaction costs in land markets, our results indicate that the formalization of leasing rights resulted in a redistribution of land toward more productive farmers. Consequently, the aggregate productivity of land increased significantly. We also find that the reform increased the responsiveness of land allocation across crops to changes in crop prices.

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