Your misfortune is also mine: Land expropriation, property rights insecurity, and household behaviors in rural China

Mingda Cheng, Julan Du, Chunhui Ye and Qi Zhang

Journal of Comparative Economics, 2022, vol. 50, issue 4, 1068-1086

Abstract: Using a unique nationwide survey of rural China, we examine the effects of property rights insecurity (PRI) created by undercompensated land requisitions (ULRs). To preclude the confounding impact of land losses on the behavior of displaced households, we adopt a novel approach comparing unaffected households in counties with massive ULRs and their counterparts in land-requisitioned counties without widespread ULRs, adjusted by their respective control group households in adjacent non-land-requisitioned counties. The group from counties with widespread ULRs exhibits significantly lower trust in local governments, employs risk-proof strategies to cope with perceived PRI, and experiences a decline in farming efficiency and household welfare.

Keywords: Land expropriation; Property rights insecurity; Trust in local governments; Household risk-proof strategies (search for similar items in EconPapers)
JEL-codes: P26 P32 Q15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:50:y:2022:i:4:p:1068-1086

DOI: 10.1016/j.jce.2022.06.002

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