Publication Type

Journal Article

Version

submittedVersion

Publication Date

12-2004

Abstract

We employ survey data collected in 2001 in Zhejiang province to investigate patterns and determinants of land market development. Previous studies have noted the correlation between growth of off-farm jobs and rental-market development at the aggregate level, but failed empirically to demonstrate mechanisms at the disaggregate level. Our analyses find concrete evidence at the household level connecting developments in labour and land markets. Growth in off-farm jobs allow rural households to transfer labour out of farming and prompt them to relinquish land rights, generating a supply of land that drives rental activities. We also go beyond interactions between factor markets and examine how local institution building promotes rental-market development. Institutions that either lower transaction costs or secure property rights are found to be crucial in explaining cross-regional variations in rental-market development. Finally, the rise of land rental markets also highlights the role of collective ownership in shaping rural development trajectory.

Discipline

Agricultural and Resource Economics | Asian Studies

Research Areas

Sociology

Publication

China Quarterly

Volume

180

Issue

1

First Page

1031

Last Page

1049

ISSN

0305-7410

Identifier

10.1017/s0305741004000748

Publisher

Cambridge University Press

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1017/s0305741004000748

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