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Frontiers of Economics in China

Front. Econ. China    2017, Vol. 12 Issue (1) : 132-166
Orginal Article
Legal Knowledge, Land Expropriation, and Agricultural Development in Rural China
Yi Che1(), Yan Zhang2()
1. Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China
2. School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China
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By using household survey data, this paper examines the effect of legal knowledge, a proxy for farmers’ ability to protect their land, on agricultural development in rural China. The Ordinary Least Square (OLS) estimation results indicate that legal knowledge in a household raises agricultural production. Further, once the production effect of legal knowledge is controlled for, the objective measure of land expropriation has no production effect. These results survive for alternative measures of legal knowledge and subsample analysis. A two-stage least squares strategy further confirms that the effect of legal knowledge on farm production is causal. A preliminary channel analysis suggests that the impact of legal knowledge on farm production works mainly through farmyard manure investments and labor incentives.

Keywords legal knowledge      land expropriation      agricultural productivity     
Issue Date: 27 April 2017
 Cite this article:   
Yi Che,Yan Zhang. Legal Knowledge, Land Expropriation, and Agricultural Development in Rural China[J]. Front. Econ. China, 2017, 12(1): 132-166.
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