The Effect of Land Property Rights on China’s Rural-Urban Migration

China’s rural land system, a fundamental economic system essential for rural construction, agricultural development, and farmers' income in China, is currently being reformed through the Three Rights Division (TRD) mechanism to promote transformation of land management and improve the security of land contract rights. This paper examines the effects of rural land systems in China on migration, considering market mechanisms, such as land rentals, and government mechanisms, such as land expropriation. Analysis using the Probit model reveals why renting land has had a constructive effect on migration in China through the TRD reform that promotes land security and encourages migration through both market and government mechanisms. Moreover, the TRD boosts urbanization because industry structure upgrades assist China in avoiding possible middle-income traps and Lewis turning points, thereby fostering overall economic growth.

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Publication Details

Journal
Transactions on Economics Business and Management Research
Published
2024-09-28
DOI
https://doi.org/10.62051/deg39q48
Primary Topic
Regional Development and Environment
Type
article
Field-Weighted Citation Impact
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article

The Effect of Land Property Rights on China’s Rural-Urban Migration

Yuankai Gu
Transactions on Economics Business and Management Research
Regional Development and Environment
article

The Effect of Land Property Rights on China’s Rural-Urban Migration

Yuankai Gu
article en

Abstract

China’s rural land system, a fundamental economic system essential for rural construction, agricultural development, and farmers' income in China, is currently being reformed through the Three Rights Division (TRD) mechanism to promote transformation of land management and improve the security of land contract rights. This paper examines the effects of rural land systems in China on migration, considering market mechanisms, such as land rentals, and government mechanisms, such as land expropriation. Analysis using the Probit model reveals why renting land has had a constructive effect on migration in China through the TRD reform that promotes land security and encourages migration through both market and government mechanisms. Moreover, the TRD boosts urbanization because industry structure upgrades assist China in avoiding possible middle-income traps and Lewis turning points, thereby fostering overall economic growth.

Transactions on Economics Business and Management ResearchVol. 12
Shanghai International Studies University (CN)
Openalex Percentile: Top 74%
Regional Development and Environment
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