The decentralization of property rights is the focus of the forest tenure reforms in several developing countries. In China, it was achieved by the launch of a new round of collective forest tenure reform beginning in 2003, which provided farmers with more integrated and secure forestland rights. Drawing on household data collected in Jiangxi province in 2011 and 2013, this paper examines the impacts of households’ recognition of property rights and improved tenure security on forestland rental activities. Our empirical results show that households with higher perceptions of more complete use rights and mortgage rights have a lower probability and intensity of renting‐in land, while households with lower expectations of future forestland redistribution or expropriation are more likely to rent in forestland and more of it. These results imply that the development of a forestland rental market leading to better forest management requires an integrated forestland management approach consisting of decentralization of property rights and village governance. In particular, the central government may further clarify the rights and obligations affiliated to forestland ownership, contractual rights, and management rights; while the village collective may shift from direct intervention in the integrity and security of forestland rights to the supervision and protection of decentralized forestland rights to increase efficiency from the decentralization of property rights.

Abstract:The purpose of this paper is to examine the impact of land property rights integrity, subdivided into use rights, mortgage rights, and transfer rights, on household perceptions of long-term tenure security in China. To this end, we establish a theoretical framework that links China's collective forest tenure reforms undertaken since 2003 to property rights integrity and two sources of tenure (in)security based on property rights theory: forestland reallocation and expropriation. Probit models are applied in the empirical analysis to household data collected in Jiangxi province in 2011 and 2013. The results indicate that household perceptions of tenure insecurity resulting from forestland reallocation expectations are affected by transfer rights, whereas household perceptions of insecurity resulting from forestland expropriation expectations are not affected by forestland rights. We thus suggest that it is crucial for policymakers to identify the sources of local property rights insecurity before they take steps to strengthen land tenure security. This paper contributes to the available literature on the relationship between property rights integrity and tenure security by identifying different sources of tenure insecurity, emphasizing the effect of property rights integrity on long-term tenure security, and taking into account the potential endogeneity problem.

The dilemma of aging and lack of successors must be understood to improve the scale efficiency and competitiveness of China’s agriculture. This paper uses a survey of 1347 farmers in Liaoning, Jiangsu, and Jiangxi and applies tobit and probit models to explore the impact of intergenerational inheritance on farmland management in terms of the current scale and willingness for expansion. The results show that (1) an increased probability of intergenerational inheritance in agriculture can significantly increase the scale of farmland operations, with a greater effect on the current scale than on the willingness to expand; (2) the scale upgrading effect of agricultural intergenerational inheritance is greater in regions with frequent nonagricultural activities and in families with middle or low-scale farmland operations; and (3) the promotion effect on the current scale is greater for elderly farmers 60 years old or above than for farmers who are 40–59 years old, while the promotion effect on the willingness for expansion exists only for the latter. Therefore, policies should attract young, skilled laborers to return to their hometowns for agricultural employment and entrepreneurship and support farmland transfer and scale operation in regions with frequent nonagricultural activities or a lower scale of agricultural operations.

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