Allocative efficiency or misallocation of resources? The emergence of forestland rental markets and the forest devolution reform in China
研究中国林地分权改革是否通过租赁市场提高了资源配置效率和农户福利，发现改革使林地流向劳动力丰富、生产率高的农户，并增加了人均收入、降低了贫困风险。
Abstract This paper evaluates whether the devolution reform of forestland to household management improves allocative efficiency and household welfare through participation in forestland rental markets. Using a household panel dataset from three Chinese provinces, we find positive effects of the emerging forestland rental markets: with the reform, forestland was transferred to forestland-constrained and labour-rich households and households with higher levels of productivity in forestry. Participation in forestland rental markets increases household per-capita income and decreases the likelihood of income falling below the poverty line. We do not find any support for forestland captured by land-richer, wealthier, larger or powerful households.