Mismatch: Land Reallocations, Recovery Land Rental and Land Rental Market Development in Rural China

52 Pages Posted: 3 Jul 2012

See all articles by Yi Che

Yi Che

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Date Written: August 10, 2009

Abstract

Drawing upon a unique farm survey in 2003, I find that in rural China, Full-scale Land Reallocation (FLR) are more likely to follow egalitarian rule and Partial-scale Land Reallocation (PLR) take productivity of households into consideration. Econometric evidences shows two main results. First, FLR have positive effect on household land rental behavior, possibly because egalitarian FLR create a mismatch between household agricultural ability and land size and after FLR households has to participate in land rental market to adjust the mismatch. Second, PLR have negative effect on household land rental behavior which supports that land reallocation and land rental market are substitutes (Brandt, Rozelle and Turner, 2004).

Keywords: mismatch, egalitarian, recovery land rental, full-scale land reallocation, partial-scale land reallocation

JEL Classification: Q15, Q13

Suggested Citation

Che, Yi, Mismatch: Land Reallocations, Recovery Land Rental and Land Rental Market Development in Rural China (August 10, 2009). Available at SSRN: https://ssrn.com/abstract=2098382 or http://dx.doi.org/10.2139/ssrn.2098382

Yi Che (Contact Author)

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

Huashan Road 1954
Shanghai Jiao Tong University
Shanghai, Shanghai 200030
China

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