HAZARDS OF EXPROPRIATION:TENURE INSECURITY AND INVESTMENT IN RURAL CHINA

Hanan Jacoby, Guo Li and Scott Rozelle

No 11960, Working Papers from University of California, Davis, Department of Agricultural and Resource Economics

Abstract: This paper uses household data from Northeast China to examine the link between investment and land tenure insecurity induced by China's system of village-level land reallocation. We quantify expropriation risk using a hazard analysis of individual plot tenures and incorporate the predicted "hazards of expropriation" into an empirical analysis of plot-level investment. Our focus is on organic fertilizer use, which has long lasting benefits for soil quality. Although we find that higher expropriation risk significantly reduces application of organic fertilizer, a welfare analysis shows that guaranteeing land tenure in this part of China would yield only minimal efficiency gains.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 50
Date: 2002
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Citations: View citations in EconPapers (164)

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Journal Article: Hazards of Expropriation: Tenure Insecurity and Investment in Rural China (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ucdavw:11960

DOI: 10.22004/ag.econ.11960

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