TY - JOUR
T1 - Land rights and investment incentives
T2 - evidence from China's latest rural land titling program
AU - Zhou, Nan
AU - Cheng, Wenli
AU - Zhang, Longyao
N1 - Funding Information:
This work was supported by the National Natural Science Foundation of China [Grant number 71573125 ; 71973064 ; 72141013 ].
Publisher Copyright:
© 2022 Elsevier Ltd
PY - 2022/6
Y1 - 2022/6
N2 - We compile a panel dataset from official surveys of 2010–2015 to study how China's latest rural land titling program affected households’ long-term agricultural investment. Applying the DD method and the PSM-DD method, we find that the rural land titling program had a positive effect on households’ land-related investment (measured by the application of organic fertiliser). In addition, we present 3 pieces of evidence which support the view that the positive investment effect was due to enhanced incentives as a result of improved land tenure security. First, the investment effect was significant for land-related investment, but not significant for non-land-related investment (measured by the purchase of agricultural machinery). Second, the investment effect was stronger for the households that saw a greater improvement in their land tenure security. Third, the investment effect on households’ own contracted land was stronger than that on their rented-in land, unless the households had long-term (i.e., more than one year) written rental contracts for their rented-in land.
AB - We compile a panel dataset from official surveys of 2010–2015 to study how China's latest rural land titling program affected households’ long-term agricultural investment. Applying the DD method and the PSM-DD method, we find that the rural land titling program had a positive effect on households’ land-related investment (measured by the application of organic fertiliser). In addition, we present 3 pieces of evidence which support the view that the positive investment effect was due to enhanced incentives as a result of improved land tenure security. First, the investment effect was significant for land-related investment, but not significant for non-land-related investment (measured by the purchase of agricultural machinery). Second, the investment effect was stronger for the households that saw a greater improvement in their land tenure security. Third, the investment effect on households’ own contracted land was stronger than that on their rented-in land, unless the households had long-term (i.e., more than one year) written rental contracts for their rented-in land.
KW - Agricultural investment
KW - Investment effect of land titling
KW - Land tenure security
KW - Land titling
UR - http://www.scopus.com/inward/record.url?scp=85128878889&partnerID=8YFLogxK
U2 - 10.1016/j.landusepol.2022.106126
DO - 10.1016/j.landusepol.2022.106126
M3 - Article
AN - SCOPUS:85128878889
SN - 0264-8377
VL - 117
JO - Land Use Policy
JF - Land Use Policy
M1 - 106126
ER -
