Effect of Land Property Rights on Forest Resources in Southern China

Abstract

The land tenure reform is important for forest resource management worldwide. Since China initiated a new round of collective forestland tenure reform (CFTR) in 2003, improving forest output by clarifying property rights plays a crucial role in realizing sustainable forest resource management. Using survey data of 312 bamboo plantation households from Southern China, this paper empirically examines the impact path of land property rights on forest resources. The estimation results show that both the forestland use right and disposal right are able to significantly improve the forest output by encouraging households to invest and optimizing the allocation of forestry labor. Particularly, the results reveal that the use right has a positive impact on forest output through forestland investment. With regard to the disposal right, we find that it has a positive effect on forest output through forestland investment, but it has a negative impact on forest output through the forestry labor allocation. The findings of this study suggest that to promote the growth of forest resources, the government should endow households with a more complete set of rights, and further strengthen their understanding of property rights. In addition, our findings enhance the understanding of the collective forestland tenure reform in China; they also have implications for the decentralized management of forestry elsewhere in the world.