HAZARDS OF EXPROPRIATION:TENURE INSECURITY AND INVESTMENT IN RURAL CHINA

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.


Issue Date:
2002
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/11960
Total Pages:
50
Series Statement:
Working Paper 02-007




 Record created 2017-04-01, last modified 2017-08-23

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