Impact Of Tenure Security On Land Transfer,Investment And Output In Rural China

The No.1 Central document has repeatedly made provisions for contracted management of rural land transfer since 2005.The 3rd Plenary Session of the 11th Central Committee of the Communist Party of China professed "to give farmers more fully and guaranteed the right to the contracted management of land,the existing land contract relations remain stable and unchanged for a long time."The reports from 19th National Congress of the Communist Party of China further stated that "maintain current land contract stable and unchanged,the second round of land contracts will be extended for another 30 years." In addition,the state has made clear regulations on land transfer in the 1998 Land Administration Law.The 2003 Rural Land Contract Law set further restrictions on rural land regulation.Although relevant policies have been in place for many years and corresponding performance is basically released,what is the actual implementation effect?Can rural land tenure security promote rural land transfer,improve the peasants' production enthusiasm,thus stimulate the long-term investment in rural land and eventually promote the sustainable development of agricultural production?To answer the above questions,this study first reviewed the evolution of rural land tenure since the"Reform and Opening Up" and the characteristics of rural land tenure in various stages.Secondly,from the perspective of rural land tenure law and factual security,this paper constructed the "tenure security-peasant behavior(transfer/investment)-production performance" theoretical analysis framework,which uses on peasant behavior theory,property theory,land rent theory and institutional change theory as theoretical basis.Finally,based on surveyed data of 1136 households in 8 provinces in 2013,this paper uses the Logit,Tobit and LPM econometric model to analyze the impact of tenure security on rural land transfer and examine tenure security's effects on resources allocation,to analyze the influence of rural land tenure security on peasant households' long-term investment behavior and examine the tenure security's investment-stimulating effects.On this basis,this paper further analyzes tenure security's influence on agricultural productivity.Main research conclusions of this paper summarize as the followings:first,the documents and regulation introduced by the state further ensure and protect rural land ownership rights.While these regulations are also implemented by local governments in a basic level,peasants lack a general understanding of land ownership and a perception of land security.Secondly,Although China's rural land market experienced a rapid development,the marketization level is not enough.Many rural land transfers happen between families and relatives,most of which do not sign a written contract.Cash still remains as the primary method of contract payment.Third,government is still the main actor in rural land infrastructure construction.Peasants lack motivations.Village level and lower level investment projects play a dominant role.In addition,the usage of organic fertilizers remains a low percentage,and most peasants use their own farm manure.Fourth,the perceived safety variables of rural land tenure and factual safety variables have a significant impact on both land transfer in and transfer out.Fifth,the factual safety variables have a significant impact on farmers' long-term investment behavior,but the legal security of farmland tenure has a more salient influence.Sixth,the safety of farmland tenure has certain positive effects on rural land output,but differences exist due to different crops.Based on the research conclusions above,to promote rural land transfer,stimulate rural land investment and further improve agricultural productivity,this paper proposes following suggestions:first,perfecting the relevant laws and regulations of rural land property right system and improving efficiency of policy implementation;second,undertaking the registration and certification services of rural land covenant management and strengthening related guidance and supervision;third,increasing farmers' awareness of their property right through education and proponda of relevant law;fourth,refine the management system of rural land transfer covenant to reduce potential risks associated with land transfer;fifth,perfecting indemnification system in rural community and improving peasant household's ability and understanding of risk prevention.