Description: Moving off the Farm : Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China

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Moving off the Farm : Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China

Agriculture has made major contributions to China's economic growth and poverty reduction, but the literature has rarely focused on the institutional factors that might underpin such structural transformation and productivity. This paper aims...

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Bibliographic Details
Main Authors:	Deininger, Klaus, Jin, Songqing, Xia, Fang
Language:	English
Published:	2012
Subjects:	AGRARIAN REFORM AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL ECONOMY AGRICULTURAL EMPLOYMENT AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL PRODUCTIVITY GROWTH AGRICULTURAL SECTOR AGRICULTURAL WAGE AGRICULTURE ALLOCATIVE EFFICIENCY ASSETS ATTRITION COMPARATIVE ADVANTAGE COMPARATIVE ECONOMICS CROP PRODUCTION CROPS CROWDING OUT DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DURABLE GOODS ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC BOOM ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC OUTCOMES EFFICIENT OUTCOMES EMPLOYMENT EMPLOYMENT OPPORTUNITIES EQUIPMENT EXOGENOUS VARIABLES EXPECTED RETURNS FACTOR MARKETS FACTORS OF PRODUCTION FAMILY LABOR FAMINE FARM ACTIVITIES FARM ACTIVITY FARM EMPLOYMENT FARM HOUSEHOLDS FARM SECTOR FARM SIZE FARM WORK FARMERS FARMLAND FARMS FINANCIAL CRISIS FOOD AVAILABILITY FOOD POLICY FOREIGN INVESTMENT FUTURE RESEARCH GROSS VALUE GROWTH RATES HOUSEHOLD DEMOGRAPHICS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING HUMAN CAPITAL INCOME INCOME GROWTH INCOME INEQUALITY INCOME LEVELS INCOMES INEQUALITY INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL ENVIRONMENT LABOR ALLOCATION LABOR DEMAND LABOR FORCE LABOR FORCE PARTICIPATION LABOR LAWS LABOR MARKET LABOR MARKETS LABOR MIGRATION LABOR MOBILITY LABOR MOVEMENTS LABOR SHORTAGE LABOR SHORTAGES LABOR SUPPLY LABOR TRANSFERS LABOR-LAND LABOUR LABOUR MARKETS LABOUR MOBILITY LAND MANAGEMENT LAND OWNERSHIP LAND REDISTRIBUTION LAND REFORM LAND RIGHTS LAND SETTLEMENT LAND TENURE INSECURITY LAND USE LEVEL OF LAND LEVELS OF LAND LIQUIDITY MARKET IMPERFECTIONS MIGRANT LABOR OCCUPATIONS OUTPUTS PER CAPITA INCOME POLITICAL ECONOMY POOR POOR TENANTS POVERTY REDUCTION PRODUCTION FUNCTION PRODUCTIVITY PRODUCTIVITY CHANGE PRODUCTIVITY GROWTH PROPERTY RIGHTS RURAL RURAL AREAS RURAL DEVELOPMENT RURAL ECONOMIC DEVELOPMENT RURAL ECONOMY RURAL GROWTH RURAL HOUSEHOLDS RURAL INCOMES RURAL LABOR RURAL MIGRATION RURAL POPULATION RURAL POPULATIONS RURAL POVERTY RURAL RESIDENTS RURAL SECTOR RURAL WELFARE SAFETY SAFETY NET SECURE PROPERTY RIGHTS SHARE OF LABOR STRUCTURAL CHANGE TECHNICAL CHANGE TECHNICAL EFFICIENCY TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMY UNEMPLOYMENT VILLAGE LEADERS WAGES WATER RESOURCES WEALTH WTO
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120117113226 http://hdl.handle.net/10986/3234

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Summary:	Agriculture has made major contributions to China's economic growth and poverty reduction, but the literature has rarely focused on the institutional factors that might underpin such structural transformation and productivity. This paper aims to fill that gap. Drawing on an 8-year panel of 1,200 households in six key provinces, it explores the impact of government land reallocations and formal land-use certificates on agricultural productivity growth, as well as the likelihood of households to exit from agriculture or send family members to the non-farm sector. It finds that land tenure insecurity, measured by the history of past land reallocations, discourages households from quitting agriculture. The recognition of land rights through formal certificates encourages the temporary migration of rural labor. Both factors have a large impact on productivity (at about 30 percent each), mainly by encouraging market-based land transfers. A sustained increase in non-agricultural opportunities will likely reinforce the importance of secure land tenure, which is a precondition for successful structural transformation and continued economic attractiveness of rural areas.