Songqing Jin

Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam*

The extent to which households should be allowed to transfer their land rights in post-socialist transition economies is of considerable policy interest. The authors use data from Vietnam, a transition country that allows rental and sales of land use rights, to identify factors conducive to the development of land markets and to assess the extent to which land transfers enhance productive efficiency and transfer land to the poor. They find that activity in both rental and sales markets has increased rapidly, enhanced by the possession of long-term use rights and off-farm employment, and contributing to greater equity and efficiency of land use. While there is evidence for distress sales by households that experience a shock (death), the scope for such sales is reduced by well-functioning credit markets. Well-defined land rights and appropriate safety nets will thus help transition economies to realize the benefits from the operation of land markets.

Pesticide productivity, host-plant resistance and productivity in China

Pesticides are used as the primary method of pest control in Asian rice production. Conditions in China have led to demand for high and increasing rice yields, resulting in intensive cultivation and adoption of fertilizer responsive varieties. The consequence has been widespread pest infestations. Many studies have estimated pesticide productivity, but few have estimated the productivity of alternative methods of pest control, namely host-plant resistance. None have estimated the substitutability between these methods of pest-control. The productivity of pesticides and host-plant resistance, and the substitutability between them is measured using two-stage Cobb-Douglas and translog production functions. Under intensive rice production systems in eastern China, pesticide productivity is low compared to the productivity of host-plant resistance. In fact, returns to pesticide use are negative at the margin. Host-plant resistance is an effective substitute for pesticides and substantial reductions in pesticide use could be achieved, with no loss in rice production, through improvements in host-plant resistance. These results suggest that pesticides are being overused in eastern China and host-plant resistance is being underutilized. Government policies to promote increased pesticides in rice might be ill advised given the low productivity and negative returns, particularly in light of well known negative externalities associated with pesticide use.

Land Reforms, Poverty Reduction, and Economic Growth: Evidence from India

Abstract Recognition of the importance of institutions that provide security of property rights and relatively equal access to economic resources to a broad cross-section of society has renewed interest in the potential of asset redistribution, including land reforms. Empirical analysis of the impact of such policies is, however, scant and often contradictory. We use panel household data from India, together with state-level variation in the land reform implementation, to address some of the deficiencies of earlier studies. Results suggest that land reform had a significant and positive impact on income growth and accumulation of human and physical capital. Policy implications are drawn, especially from the fact that the observed impact of land reform seems to have declined over time.

Land Rental Markets in Kenya: Implications for Efficiency, Equity, Household Income, and Poverty

This study uses panel data from 1,142 Kenya smallholder households over four survey periods to examine the determinants of participation in land rental markets and to quantify the impact of renting land on households’ income and poverty status. Overall, the study finds that land rental markets in Kenya promote farm productivity and significantly raise the incomes of land-constrained farm households. However, these percentage increases in the incomes of renters are often not large in absolute terms, and hence participation in rental markets alone is not sufficient to meaningfully affect rural poverty rates. (JEL O12, Q15)

Determinants and Consequences of Land Sales Market Participation: Panel Evidence from India

Summary Although opinions on impacts of land market transfers are sharply divided, few studies explore welfare- and productivity-impact of land sales markets over a long time horizon and national scale. A panel spanning almost 20 years, together with an indicator of climatic (rainfall) shocks, allows us to assess factors underlying market-mediated land (sale and purchase) transactions and their impact on productivity and equity. Economic growth emerges as a key driver of such markets although shocks, their effect mitigated by bank presence, also increased market activity. Land sales improved productivity and helped purchasers, many of them formerly landless, to accumulate non-land assets and enhance their welfare.

Land Rental Markets as an Alternative to Government Reallocation? Equity and Efficiency Considerations in the Chinese Land Tenure System

The authors develop a model of land leasing with agents characterized by unobserved heterogeneity in ability and presence of an off-farm labor market. In this case, decentralized land rental may contribute to equity and efficiency goals and may have several advantages over administrative reallocation. The extent to which this is true empirically is explored using data from three of Chinas poorest provinces. The authors find that both processes redistribute land to those with lower endowments but that land rental markets are more effective in doing so and also have a larger productivity-enhancing effect than administrative reallocation, implying that more active land rental markets would allow producers to realize significant productivity gains. At the same time, the presence of a large number of producers whose participation in rental markets remains constrained suggests that efforts to reduce transaction costs in land rental markets would be warranted.

Migration, Local Off-Farm Employment, and Agricultural Production Efficiency: Evidence from China

This paper studies the effect of local off-farm employment and migration on rural households’ technical efficiency of crop production using a five-year panel dataset from more than 2,000 households in five Chinese provinces. While there is not much debate about the positive contribution of migration and local off-farm employment to China’s economy, there is an increasing concern about the potential negative effects of moving labor away from agriculture on China’s future food security. This is a critical issue as maintaining self-sufficiency in grain production will be critical for China to feed its huge population in the future. Several papers have studied the impact of migration on production and yield with mixed results. But the impact of migration on technical efficiency is rarely studied. Methodologically, we incorporate the correlated random-effects approach into the standard stochastic production frontier model to control for unobservable that are correlated with migration and off-farm employment decisions and technical efficiency. The most consistent result that emerged from our econometric analysis is that neither migration nor local off-farm employment has a negative effect on the technical efficiency of grain production, which does not support the widespread notion that vast-scale labor migration could negatively affect China’s future food security.

Wage Discrimination in India's Informal Labor Markets: Exploring the Impact of Caste and Gender

Although there has been considerable interest in wage discrimination in India, available studies have largely dealt with formal rather than informal markets that are of little relevance for the poorest people. Focusing on India’s informal labor markets leads to three findings of interest. First, gender wage discrimination is larger in informal than in formal labor markets, resulting in losses that are larger than receipts from one of the country’s most important safety-net programs. Second, economic growth will not make gender discrimination in wage labor markets disappear. Finally, contrary to what is found for gender, the hypothesis of no significant wage discrimination based on caste cannot be rejected.Although there has been considerable interest in wage discrimination in India, available studies have largely dealt with formal rather than informal markets that are of little relevance for the poorest people. Focusing on India’s informal labor markets leads to three findings of interest. First, gender wage discrimination is larger in informal than in formal labor markets, resulting in losses that are larger than receipts from one of the country’s most important safety-net programs. Second, economic growth will not make gender discrimination in wage labor markets disappear. Finally, contrary to what is found for gender, the hypothesis of no significant wage discrimination based on caste cannot be rejected.

Does Sharecropping Affect Long-Term Investment? Evidence from West Bengal's Tenancy Reforms

In India, land reform has been high on the political agenda since independence in 1947, and early efforts at abolishing intermediaries are widely credited with having brought about significant social benefits. The most prominent type is tenancy reform. As it does not extinguish landlords’ ownership rights, tenants — who may have benefited from rent ceilings and cannot be evicted — still have to pay annual share rent. This weakness of rights may fail to create the incentives for effort supply and long-term investment that have underpinned the success of land reforms elsewhere, effectively adding a dynamic inefficiency to the disincentives created by the Marshallian inefficiency of sharecropping. This could imply that despite the high political price of implementing land reform in India, the schemes so far have failed to reach their productivity and poverty reduction potential.

Risk coping and starvation in rural China

We use a 3-year panel from two poor provinces in Southern China to examine the nature of risks to which rural households are exposed and their ability to insure calorie consumption and spending of total consumption against idiosyncratic shocks to their income. We find that idiosyncratic risks are indeed the main source of income variation in the sample, consumption is better insured than total spending. Unlike total spending where full insurance is rejected in most cases, calorie intake is completely insured for both land-rich and land-poor households in both provinces. Access to even modest amounts of land significantly enhances households’ ability to guard against total spending. Land-rich households are much better insured against total spending than land-poor households. The results are robust across model specifications although Generalized Method of Moments (GMM) estimations increase the magnitude of difference in total spending between the land-rich and the land-poor. Policies targeting poverty reduction and improving land use rights and land access to the poor could potentially improve the overall risk sharing ability of the rural poor.