IDEAS home Printed from https://ideas.repec.org/p/ags/iaae12/125860.html
   My bibliography  Save this paper

Policy impacts under alternative land market regimes in rural China

Author

Listed:
  • Kleinwechter, Ulrich
  • Grethe, Harald

Abstract

In this paper we apply a simulation model of a village economy in Guizhou province, China, to assess impacts of trade reform at the household and the village level under alternative land market regimes. Putting special emphasis on the modeling of household migration a trade reform scenario is simulated with and without the existence of a land rental market in the village. Significant impacts of the land market on the policy outcome regarding household production, income and welfare are found. The possibility to trade land within the village leads to increasing specialization into agriculture and migration among the households as a response to the policy shock. In a situation with a land market, incomes of households which expand agricultural production are less negatively affected by trade reform than incomes of households which migration more. At the village level, a land market does not influence the poverty outcome of the reform but reduces its inequality enhancing impact. Village migration and exports of agricultural outputs increase.

Suggested Citation

  • Kleinwechter, Ulrich & Grethe, Harald, 2012. "Policy impacts under alternative land market regimes in rural China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125860, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae12:125860
    DOI: 10.22004/ag.econ.125860
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/125860/files/Kleinwechter-Grethe_IAAEVillCGElLandFinal.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.125860?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fan, Shenggen & Chan-Kang, Connie & Mukherjee, Anit, 2005. "Rural and urban dynamics and poverty: Evidence from China and India," FCND discussion papers 196, International Food Policy Research Institute (IFPRI).
    2. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
    3. Scott McDonald & Sherman Robinson & Karen Thierfelder, 2007. "Globe: A SAM Based Global CGE Model using GTAP Data," Departmental Working Papers 14, United States Naval Academy Department of Economics.
    4. Liu, Shouying & Carter, Michael R. & Yao, Yang, 1998. "Dimensions and diversity of property rights in rural China: Dilemmas on the road to further reform," World Development, Elsevier, vol. 26(10), pages 1789-1806, October.
    5. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
    6. Heerink, Nico & Qu, Futian & Kuiper, Marijke & Shi, Xiaoping & Tan, Shuhao, 2007. "Policy reforms, rice production and sustainable land use in China: A macro-micro analysis," Agricultural Systems, Elsevier, vol. 94(3), pages 784-800, June.
    7. Kuiper, Marijke H., 2005. "Village Modeling: A Chinese Recipe For Blending General Equilibrium And Household Modeling," Report Series 29133, Wageningen University and Research Center, Agricultural Economics Research Institute.
    8. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," The World Bank Economic Review, World Bank, vol. 1(1), pages 149-179, September.
    9. Brown, Philip H. & Bulte, Erwin & Zhang, Xiaobo, 2011. "Positional spending and status seeking in rural China," Journal of Development Economics, Elsevier, vol. 96(1), pages 139-149, September.
    10. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
    11. Michael R. Carter & Yang Yao, 2002. "Local versus Global Separability in Agricultural Household Models: The Factor Price Equalization Effect of Land Transfer Rights," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 702-715.
    12. Colin A. Carter & Funing Zhong & Jing Zhu, 2009. "Development of Chinese Agriculture since WTO Accession," EuroChoices, The Agricultural Economics Society, vol. 8(2), pages 10-16, August.
    13. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
    14. Lohmar, Bryan, 1999. "Land Tenure Insecurity And Labor Allocation In Rural China," 1999 Annual meeting, August 8-11, Nashville, TN 21495, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. SHI, Xiaoping & Heerink, Nico & Qu, Futian, 2007. "Choices between different off-farm employment sub-categories: An empirical analysis for Jiangxi Province, China," China Economic Review, Elsevier, vol. 18(4), pages 438-455.
    16. Tu, Qin & Heerink, Nico & Xing, Li, 2006. "Factors Affecting the Development of Land Rental Markets in China - A Case Study for Puding County, Guizhou Province," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25547, International Association of Agricultural Economists.
    17. repec:bla:eurcho:v:8:y:2009:i:specialissuechina:p:10-16 is not listed on IDEAS
    18. Kung, James Kai-sing, 2002. "Off-Farm Labor Markets and the Emergence of Land Rental Markets in Rural China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 395-414, June.
    19. Yang Yao, 2000. "The Development of the Land Lease Market in Rural China," Land Economics, University of Wisconsin Press, vol. 76(2), pages 252-266.
    20. Lopez, Ramon E., 1984. "Estimating labor supply and production decisions of self-employed farm producers," European Economic Review, Elsevier, vol. 24(1), pages 61-82.
    21. Ran Tao & Zhigang Xu, 2007. "Urbanization, rural land system and social security for migrants in China," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1301-1320.
    22. XING, Li & FAN, Shenggen & LUO, Xiaopeng & ZHang, Xiaobo, 2009. "Community poverty and inequality in western China: A tale of three villages in Guizhou Province," China Economic Review, Elsevier, vol. 20(2), pages 338-349, June.
    23. Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen, Lan-jiao & Butsic, Van & Stapp, Jared R. & Zhang, An-lu, 2020. "What happens to land price when a rural construction land market legally opens in China? A spatiotemporal analysis of Nanhai district from 2010 to 2015," China Economic Review, Elsevier, vol. 62(C).
    2. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Trade policy impacts under alternative land market regimes in rural China," China Economic Review, Elsevier, vol. 23(4), pages 1071-1089.
    2. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    3. Ma, Meilin, 2017. "Earthbound Labor and Incomplete Exit from Farming in China: Multiple Distortions and Nonseparable Decisions," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258414, Agricultural and Applied Economics Association.
    4. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    5. Ito, Junichi & Bao, Zongshun & Ni, Jing, 2016. "Land rental development via institutional innovation in rural Jiangsu, China," Food Policy, Elsevier, vol. 59(C), pages 1-11.
    6. Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.
    7. Hongqin Chang & Jing Liu & Yanyun Gao, 2017. "Land tenure policy and women’s off-farm employment in rural China," Working Papers PMMA 2017-03, PEP-PMMA.
    8. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    9. Shi, Xiaoping & HEERINK, Nico & QU, Futian, 2011. "Does off-farm employment contribute to agriculture-based environmental pollution? New insights from a village-level analysis in Jiangxi Province, China," China Economic Review, Elsevier, vol. 22(4), pages 524-533.
    10. BROSIG, Stephan & GLAUBEN, Thomas & Herzfeld, Thomas & WANG, Xiaobing, 2009. "Persistence of full- and part-time farming in Southern China," China Economic Review, Elsevier, vol. 20(2), pages 360-371, June.
    11. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    12. Han Zhang & Jari Kuuluvainen & Hongqiang Yang & Yi Xie & Can Liu, 2017. "The Effect of Off-Farm Employment on Forestland Transfers in China: A Simultaneous-Equation Tobit Model Estimation," Sustainability, MDPI, vol. 9(9), pages 1-14, September.
    13. Lijing Zhang & Mingyong Hong & Xiaolin Guo & Wenrong Qian, 2022. "How Does Land Rental Affect Agricultural Labor Productivity? An Empirical Study in Rural China," Land, MDPI, vol. 11(5), pages 1-19, April.
    14. Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
    15. Che, Yi, 2009. "Mismatch: land reallocations, recovery land rental and land rental market development in rural China," MPRA Paper 39794, University Library of Munich, Germany.
    16. Mullan, Katrina & Grosjean, Pauline & Kontoleon, Andreas, 2011. "Land Tenure Arrangements and Rural-Urban Migration in China," World Development, Elsevier, vol. 39(1), pages 123-133, January.
    17. Jia, Lili & Petrick, Martin, 2011. "How land fragmentation affects off-farm labor supply in China: Evidence from household panel data," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114522, German Association of Agricultural Economists (GEWISOLA).
    18. Derek G. Stacey, 2011. "Tenure Insecurity, Adverse Selection, And Liquidity In Rural Land Markets," Working Paper 1269, Economics Department, Queen's University.
    19. Zhang, Jian & Mishra, Ashok K. & Ma, Xianlei, 2023. "Mechanism of Chinese farmers’ land rental participation: The role of invisible markets and public intervention," Food Policy, Elsevier, vol. 117(C).
    20. Jia, Lili & Petrick, Martin, 2014. "How does land fragmentation affect off-farm labor supply: panel data evidence from China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 369-380.

    More about this item

    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Food Security and Poverty; International Relations/Trade; Land Economics/Use;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:125860. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.