Farmland Regulation, Structural Change and Agricultural Development: Evidence from Chongqing Land Coupon Reform
Yameng Fan
This study explores the effect of relaxing farmland regulation on structural change and agriculture development using land reform in Chongqing. Conversion of farmland to urban land is strictly constrained by national construction land quota in China. In 2008, Chongqing invented Land Coupon System, which creates a market for farmers and firms to trade newly created construction land quota. Farmers obtain land coupons by reclaiming their rural housing to farmland and real estate firms need to purchase land coupons before bidding for a parcel of urban land to develop. I collect comprehensive transaction records of land coupons from Chongqing country land exchange. Preliminary results imply that counties supply land coupons more experience faster structural change, measured by reduction of agriculture employment share. Furthermore, reclaiming rural housing to farmland foster grain output by increasing agricultural sown area.
Event: World Bank Land Conference 2024 - Washington
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