Securing Property Rights in Transition: Lessons from Implementation of China's Rural Land Contracting Law

36 Pages Posted: 20 Apr 2016  

Klaus Deininger

World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Songqing Jin

Michigan State University; World Bank

Date Written: December 1, 2007

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.

Keywords: Common Property Resource Development, Municipal Housing and Land, Access to Finance, Political Economy, Land and Real Estate Development

Suggested Citation

Deininger, Klaus and Jin, Songqing, Securing Property Rights in Transition: Lessons from Implementation of China's Rural Land Contracting Law (December 1, 2007). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2007. Available at SSRN: https://ssrn.com/abstract=1076958

Klaus Deininger (Contact Author)

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/kdeininger

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Songqing Jin

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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