Market-oriented land rentals in the less-developed regions of China

Tongwei Qiu, Biliang Luo, Pengpeng Geng and Mande Zhu

Applied Economics Letters, 2021, vol. 28, issue 11, 945-948

Abstract: Using data from southwest China to investigate the marketization of land rentals, we find no difference in land rents for different types of transaction partners after accounting for endogeneity, even though relation-oriented rental transactions are popular in less-developed regions. Further analysis shows that oral contracts are more common in land rentals between kins or between farm households within the village. After excluding rent-free transactions, the land rents between kins are 677.143 yuan/mu per year on average. Our findings imply that both blood relation and regional relation do not impair the functioning of the market in today’s China.

Date: 2021
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DOI: 10.1080/13504851.2020.1786492

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