How did land titling affect China's rural land rental market? Size, composition and efficiency. (March 2019)

• Record Type: Journal Article
• Authors: Cheng, Wenli; Xu, Yuyun; Zhou, Nan; He, Zaizhong; Zhang, Longyao
• Is Part Of: Land use policy. Volume 82(2019)
• Page Start: 609
• Page End: 619
• Publication Date: 2019-03
• Subjects: Land rights -- Land rental market -- Rural land titling reform -- China; Land use -- Periodicals; Land use -- Government policy -- Periodicals; Sol, Utilisation du -- Périodiques; Sol, Utilisation du -- Politique gouvernementale -- Périodiques; Electronic journals; 333.7305
• DOI: 10.1016/j.landusepol.2018.12.037
• Languages: English
• ISSNs: 0264-8377

Abstract

Highlights: The latest Chinese land titling reform did not affect the volume of land transfer. The reform did not affect the duration of the rental contract. The reform encouraged land transfer to agricultural enterprises and cooperatives. The reform discouraged land transfer to other households. The reform increased the use of pecuniary rents and written contract. Abstract: Based on 2010–2015 official surveys conducted by the Ministry of Agriculture, we apply the difference-in-differences method to study how the latest land titling reform in China affected the land rental market. While we cannot attribute the rapid growth of the land rental market during this period to the land titling reform, the reform did have a significant impact on the composition of renters and certain features of the rental transaction. Specifically, we show that the land titling reform led to an increase in land transferred to agricultural enterprises and cooperatives, and a decrease in the probability of households renting land out to other households (which were likely to be relatives and friends). The land titling reform also encouraged households to use written contracts and to charge pecuniary rents, although it did not affect the duration of the contract. Our results suggest that the land titling reform improved the efficiency of the land rental market by promoting the formalisation of rental contracts and by facilitating the allocation of land to more productive users.