Development of land rental market and its effect on household farming in rural China : an empirical study in Zhejiang Province

This paper investigates the impact of land rental market development on the efficiency of labor allocation and land utilization in rural China. To test the hypothesis that the shadow wage of a rent-in household with limited off-farm opportunities will increase with the development of a land rental market for households, a statistical comparison between the shadow wage and the estimated market wage was conducted. The results showed that the shadow wage for both rent-in households and non-rent-in households was significantly lower than the market wage, but that the wage for the rent-in households was statistically higher than that for non-rent-in households in Fenghua and Deqing, the two counties surveyed in this study. In addition, the estimated marginal product of farmland for rent-in households was statistically higher than the actual land rent that those households paid, while a null hypothesis that the actual rental fee accepted by rent-out households is equivalent to the marginal product of farmland for those households was not rejected in Fenghua county where land transactions by mutual agreement were more prevalent. These results indicate that the development of the land rental market facilitates the efficiency of labor allocation and farmland utilization in rural China.

Regional differences regarding land tenancy in rural Rwanda, with special reference to sharecropping in a coffee production area

This paper examines land tenancy systems and tenant contracts in Rwanda, with respect to socioeconomic contexts. Our research in southern and eastern Rwanda produced data suggesting that land borrowing with fixed rents has been generally practiced, and that rent levels have been low in comparison to expected revenues from field production. In the western areas of coffee production, however, the practice of sharecropping has recently appeared. This system is advantageous to landowners, as they are able to acquire half of the harvests; in addition, the fixed rent levels in this region are much higher than those of other regions. In the southern and eastern regions, because land borrowing with fixed rents has been the only tenancy pattern and rent levels have remained low, the economic situation should be interpreted in the context of a continuing traditional Rwandan land tenure system. In contrast, in the western coffee production area, the soaring of fixed rents and the emergence of sharecropping have been brought about by high pressures for land use, which were caused not only by a population increase but also by the development of cash crop production and the existence of a labor exchange system. The increase in rent levels has therefore been offset by a corresponding increase in agricultural productivity.