HAZARDS OF EXPROPRIATION:TENURE INSECURITY AND INVESTMENT IN RURAL CHINA
Resource information
Date of publication
Dezembro 2002
Resource Language
ISBN / Resource ID
AGRIS:US2012202755
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.
