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Legal Knowledge, Land Expropriation, and Agricultural Development in Rural China

Author

Listed:
  • Yi Che

    (Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China)

  • Yan Zhang

    (School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China)

Abstract

By using household survey data, this paper examines the effect of legal knowledge, a proxy for farmers¡¯ ability to protect their land, on agricultural development in rural China. The Ordinary Least Square (OLS) estimation results indicate that legal knowledge in a household raises agricultural production. Further, once the production effect of legal knowledge is controlled for, the objective measure of land expropriation has no production effect. These results survive for alternative measures of legal knowledge and subsample analysis. A two-stage least squares strategy further confirms that the effect of legal knowledge on farm production is causal. A preliminary channel analysis suggests that the impact of legal knowledge on farm production works mainly through farmyard manure investments and labor incentives.

Suggested Citation

  • Yi Che & Yan Zhang, 2017. "Legal Knowledge, Land Expropriation, and Agricultural Development in Rural China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(1), pages 132-166, March.
    • Handle: RePEc:fec:journl:v:12:y:2017:i:1:p:132-166
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-006-017-0007-1
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    Citations

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    Cited by:

    1. Jing Li, 2019. "Land tenure and agricultural investments in China: a meta-regression analysis," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(2), pages 329-347, September.

    More about this item

    Keywords

    legal knowledge; land expropriation; agricultural productivity;
    All these keywords.

    JEL classification:

    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law

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