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Using data from the 2015 China Household Finance Survey, we find that secure land tenure reduces informal land rentals between acquaintances. Additionally, secure land tenure increases land rent even when rental transactions are conducted between acquaintances. Our analysis suggests that although the land transfer rate in China is currently barely increasing, stabilizing land tenure can increase the marketization of rental transactions between acquaintances and activate land rental markets.

Does land tenure security increase the marketization of land rentals between acquaintances?