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The impact of land reallocation on technical efficiency: evidence from China
Author(s) -
Zhang Yanjie,
Wang Xiaobing,
Glauben Thomas,
Brümmer Bernhard
Publication year - 2011
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2010.00532.x
Subject(s) - china , renting , frontier , stochastic frontier analysis , distribution (mathematics) , panel data , production (economics) , natural resource economics , economics , agricultural economics , function (biology) , business , geography , econometrics , microeconomics , mathematical analysis , mathematics , archaeology , political science , law , evolutionary biology , biology
China's rural reforms expose farm households to an increased risk of administrative land reallocation and adjustment. This study explores the impact of land reallocation on technical efficiency, based on a panel data set from rural households in Zhejiang, Hubei, and Yunnan provinces between 1995 and 2002. Our research indicates that the development of a land rental market could serve as a substitute for administrative land reallocation in optimizing the distribution of land resources. The results from the stochastic frontier production function show that land reallocation does have effects on technical efficiency. The different signs for different provinces indicate that the impact of land reallocation on technical efficiency is an empirical issue and depends on the specific institutional settings and the overall economic environment in each province.