Impact of Tenure Security and Trust on Land Rental Market Development in Rural China

Xianlei Ma, Nico Heerink, Ekko van Ierlan, Hairu Lang and Xiaoping Shi

No 212219, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: This paper examines the impact of actual and perceived land tenure security and trust on the leasing of land, using detailed household-level data collected in two different regions in China. Wirth regard to actual tenure security, we find that possession of land certificates increases the probability that a household rents in additional land, the size of the leased land, and the probability of using formal contracts; absence of land reallocations in recent years positively affects the likelihood of using informal contracts. Perceptions of tenure security matter for the land renting decisions of households with high actual tenure security. Higher perceived security positively affects the probability that a household rents in additional land as well as the size of the leased land. As regards trust, we find that higher kinship trust induces households to use informal contracts, while higher trust towards known people induces households to use formal contracts.

Keywords: Agricultural and Food Policy; Land Economics/Use (search for similar items in EconPapers)
Pages: 36
Date: 2015
New Economics Papers: this item is included in nep-agr and nep-cna
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212219

DOI: 10.22004/ag.econ.212219

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