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Household Property Rights Formation in Rural China: Farmers' Preference, Transaction Cost and the Efficiency Hypothesis

Yi Che (), Zuojun Fan and Yan Zhang

Asian Economic Journal, 2019, vol. 33, issue 2, 143-164

Abstract: This paper examines the effects of farmers' preference, transaction cost and household productivity on land reallocation in rural China. Empirical results from a sample of 2102 households show that farmers' preference has no effect on land reallocation. The transaction cost has negative effects on partial‐scale land reallocation but has no effect on full‐scale land reallocation. Interestingly, highly productive and unproductive households receive more partial‐scale land reallocation than households with a median level of productivity, supporting the efficiency hypothesis (Brandt et al., 2004).

Date: 2019
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Handle: RePEc:bla:asiaec:v:33:y:2019:i:2:p:143-164