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Are they satisfied with land taking? Aspects on procedural fairness, monetary compensation and behavioral simulation in China’s land expropriation story

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  • Cao, Yu
  • Zhang, Xiaoling

Abstract

Farmland expropriation and the associated satisfaction or otherwise of farmers has been receiving increased attention under the background of China's rapid urbanization. We use a literature review to identify specific gaps that need to be filled: (1) where and how the satisfaction of land expropriation comes from? (2) how to effectively measure the level of satisfaction? The evaluation of satisfaction is considered to come from three stages of pre, during and post expropriation. This paper aims to examine two groups of land-taken and land-kept farmers by using the binary nonlinear model, logit and order-Probit regression, blinder-Oaxaca decomposition and Heckman two-step selection as the data analysis method. Two research questions are raised in an extended Institutional Analysis and Development (IAD) framework, including: 1) which factors mostly affect farmer's willingness and satisfaction in the IAD framework? and 2) what is the marginal effect of different factors, especially of the interaction between land compensation standards and the openness and fairness of expropriation procedures? The four main results indicate that, firstly, improvement in the compensation criterion is helpful for improving the level of satisfaction, but does not mean that higher compensation is better, because empirical research indicates that simply increasing the amount of compensation does not significantly increase satisfaction unless the farmers are consulted over the land-acquisition procedures and compensation amounts. Second, the most important aspect for the farmers is how much their income level increases, ‘inequality rather than want is the cause of trouble’ and, in the absence of any consultation, ‘waiting for the right place to sell' in the next round. Third, compensation should be allocated to the farmer instead of the rural collective. Fourth, according to the theories of resource endowment and reference dependence, to explicate the negative effect between the strength and perception of property rights, it is considered that the inter-relationship between land ownership and farmland circulation is uncertain. Whether the influence is positive or negative mostly depends on the strength of the property rights, institutional environment, behavioral cognitive ability and the capability to implement or act.

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  • Cao, Yu & Zhang, Xiaoling, 2018. "Are they satisfied with land taking? Aspects on procedural fairness, monetary compensation and behavioral simulation in China’s land expropriation story," Land Use Policy, Elsevier, vol. 74(C), pages 166-178.
  • Handle: RePEc:eee:lauspo:v:74:y:2018:i:c:p:166-178
    DOI: 10.1016/j.landusepol.2017.08.027
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    References listed on IDEAS

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    1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
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    2. Tong Weiming & Zhu Liyuan & Lo Kevin, 2019. "Livelihood adaptation and life satisfaction among land-lost farmers: Critiquing China’s urbanisation-driven land appropriation," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 46(46), pages 149-161, December.
    3. Cao, Yu & Zhang, Xiaoling & He, Lingxiao, 2020. "Collective Action in maintaining rural infrastructures: cadre-farmer relationship, institution rules and their interaction terms," Land Use Policy, Elsevier, vol. 99(C).
    4. Cheng, Long, 2021. "China’s rural transformation under the Link Policy: A case study from Ezhou," Land Use Policy, Elsevier, vol. 103(C).
    5. Chenxi Li & Zenglei Xi, 2019. "Social Stability Risk Assessment of Land Expropriation: Lessons from the Chinese Case," IJERPH, MDPI, vol. 16(20), pages 1-20, October.
    6. Kumar, Pankaj & Kumar, Parveen & Garg, Ramesh Kumar, 2021. "A study on farmers' satisfaction and happiness after the land sale for urban expansion in India," Land Use Policy, Elsevier, vol. 109(C).
    7. Hanlong Gu & Yiying Liu & Fengkui Qian & Qiubing Wang & Xiuru Dong, 2021. "An Empirical Analysis of the Factors Affecting Farmer Satisfaction Under the China Link Policy," SAGE Open, , vol. 11(2), pages 21582440211, June.
    8. Zhaoxia Guo & Qinqin Guo & Yujie Cai & Ge Wang, 2021. "Unraveling Risk Networks of Cultivated Land Protection: An Exploratory Stakeholder-Oriented Case Study in Xiliuhe Town, Hubei Province, China," Land, MDPI, vol. 10(11), pages 1-26, November.
    9. Mingyu Zhang & Qiuxiao Chen & Kewei Zhang & Dongye Yang, 2021. "Will Rural Collective-Owned Commercial Construction Land Marketization Impact Local Governments’ Interest Distribution? Evidence from Mainland China," Land, MDPI, vol. 10(2), pages 1-20, February.
    10. Chuhong Wang & Yonghua Wang & Xingfei Liu & Jiatong Zhong, 2023. "Housing Demolition and Occupational Mobility: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(1), pages 191-221, November.
    11. Zhao, Xiaohang & Xie, Yu, 2022. "The effect of land expropriation on local political trust in China," Land Use Policy, Elsevier, vol. 114(C).
    12. Linshu Qiu & Dongxiao Yang & Kairong Hong, 2023. "Multidimensional Preference Game and Extreme Dispute Resolution for Optimal Compensation of House Expropriation," Mathematics, MDPI, vol. 11(11), pages 1-20, May.
    13. Zhou, Yang & Li, Xunhuan & Liu, Yansui, 2020. "Rural land system reforms in China: History, issues, measures and prospects," Land Use Policy, Elsevier, vol. 91(C).
    14. Ernest Uwayezu & Walter T. de Vries, 2019. "Expropriation of Real Property in Kigali City: Scoping the Patterns of Spatial Justice," Land, MDPI, vol. 8(2), pages 1-29, January.

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