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Mismatch Land reallocations, recovery land rental and land rental market development in rural China

Mismatch Land reallocations, recovery land rental and land rental market development in rural China Purpose – The purpose of this paper is to evaluate the relative impacts of full‐scale land reallocation (FLR) and partial‐scale land reallocation (PLR) on household land rental behavior in rural China. Design/methodology/approach – Probit model, Tobit model and Semi‐parametric model are used to provide empirical evidences. Findings – Drawing upon an unique farm survey in 2003, the authors find that in rural China, FLR is more likely to follow egalitarian rule and PLR takes productivity of households into consideration. Econometric analysis provides two main findings. First, FLR has positive effect on household land rental behavior, possibly because egalitarian FLR creates a mismatch between household agricultural ability and land size and after FLR households have to participate in land rental market to adjust the mismatch. Second, PLR has negative effect on household land rental behavior which supports that land reallocation and land rental market are substitutes (Brandt et al. , 2004). Originality/value – The main contribution of this study is to show that FLR and PLR in rural China are motivated by two different rationales (i.e. FLR by egalitarian concerns and PLR by efficiency concerns). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Mismatch Land reallocations, recovery land rental and land rental market development in rural China

China Agricultural Economic Review , Volume 6 (2): 19 – Apr 29, 2014

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Publisher
Emerald Publishing
Copyright
Copyright © 2014 Emerald Group Publishing Limited. All rights reserved.
ISSN
1756-137X
DOI
10.1108/CAER-06-2012-0070
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to evaluate the relative impacts of full‐scale land reallocation (FLR) and partial‐scale land reallocation (PLR) on household land rental behavior in rural China. Design/methodology/approach – Probit model, Tobit model and Semi‐parametric model are used to provide empirical evidences. Findings – Drawing upon an unique farm survey in 2003, the authors find that in rural China, FLR is more likely to follow egalitarian rule and PLR takes productivity of households into consideration. Econometric analysis provides two main findings. First, FLR has positive effect on household land rental behavior, possibly because egalitarian FLR creates a mismatch between household agricultural ability and land size and after FLR households have to participate in land rental market to adjust the mismatch. Second, PLR has negative effect on household land rental behavior which supports that land reallocation and land rental market are substitutes (Brandt et al. , 2004). Originality/value – The main contribution of this study is to show that FLR and PLR in rural China are motivated by two different rationales (i.e. FLR by egalitarian concerns and PLR by efficiency concerns).

Journal

China Agricultural Economic ReviewEmerald Publishing

Published: Apr 29, 2014

Keywords: Agricultural markets; Land ownership and tenure

References