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Jacoby, Hanan G.,
Guo Li, and
Scott Rozelle. 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China ."
,
92(5): 1420-1447.
Show Article Details
DOI: 10.1257/000282802762024575
Abstract:We use 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.
Authors:
Jacoby, Hanan G.
Li, Guo
Rozelle, Scott
JEL Classifications:
:
None
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