Changing Property-Rights Regimes: A Study of Rural Land Tenure in China

Abstract

AbstractThrough two rounds of land contracting, rural households have been allocated a bundle of rights in land. We observe significant differences across villages in the amount of land to which villagers retain a claim and the institutional mechanisms governing the exchange of land rights. This study reveals the perpetuation and expansion of non-market mechanisms accruing to the benefit of village cadres and state officials and only limited emergence of market mechanisms in which households are primary beneficiaries. It identifies factors in economic, political and legal domains that incentivize and enable state officials and local cadres to capture returns from use of land. Relatedly, the study finds differences in conflict over property-rights regimes. Drawing on a pilot survey carried out by the authors in November of 2011 in Shaanxi and Jiangsu provinces (192 households in 24 villages), this paper seeks to explain heterogeneity and change in property-rights regimes over time and across space.