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Policy impacts under alternative land market regimes in rural China

Ulrich Kleinwechter and Harald Grethe

No 125860, 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil from International Association of Agricultural Economists

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.

Keywords: Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Food Security and Poverty; International Relations/Trade; Land Economics/Use (search for similar items in EconPapers)
Pages: 25
Date: 2012
New Economics Papers: this item is included in nep-agr, nep-cmp and nep-tra
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae12:125860

DOI: 10.22004/ag.econ.125860

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