Property Rights Reform to Support China's Rural ‐ Urban Integration: Household‐Level Evidence from the Chengdu Experiment

25 Pages Posted: 28 Apr 2020

See all articles by Klaus Deininger

Klaus Deininger

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

Songqing Jin

World Bank; Michigan State University

Shouying Liu

Renmin University of China - School of Economics

Fang Xia

University of International Business and Economics (UIBE); World Bank

Date Written: January 2020

Abstract

In 2008, as part of a national experiment, Chengdu prefecture implemented ambitious property rights reforms including complete registration of all land together with measures to ease transferability and eliminate migration restrictions. Results from a difference‐in‐difference analysis of the National Statistics Bureau's regular household survey suggest that the reforms increased consumption and income, in particular for less wealthy and less educated households, with estimated benefits well above the cost of implementation. Local labour supply increased with the young shifting towards agriculture and the old towards off‐farm employment. The reforms also contributed to higher agricultural yields and profits through three channels, namely: (i) greater rental market activity that transferred land to more productive producers; (ii) substitution of purchased inputs for labour; and (iii) a shift out of grains towards vegetables, corn, and oilseeds all of which offer higher levels of profitability. All of these findings are consistent with the notion that, without reforms, imperfections in factor markets undermined investment and functioning of land and labour markets, preventing high‐value peri‐urban land from being used most effectively and reducing job creation.

Keywords: China, productivity, property rights, time use

Suggested Citation

Deininger, Klaus and Jin, Songqing and Liu, Shouying and Xia, Fang, Property Rights Reform to Support China's Rural ‐ Urban Integration: Household‐Level Evidence from the Chengdu Experiment (January 2020). Australian Journal of Agricultural and Resource Economics, Vol. 64, Issue 1, pp. 30-54, 2020, Available at SSRN: https://ssrn.com/abstract=3586838 or http://dx.doi.org/10.1111/1467-8489.12328

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

World Bank ( email )

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

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Shouying Liu

Renmin University of China - School of Economics ( email )

No. 59, Zhongguancun Street
Beijing, Beijing 100080
China

Fang Xia

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
131
PlumX Metrics