Markets for forestland use rights: A case study in Southern China

Although China still holds land in collective and state ownership, land use rights have been largely privatized. While transactions for forestland use rights have taken place for more than two decades, few detailed investigations of the transactions have been conducted. This study investigates 222 households in eight villages of Linan and Anji counties located within Zhejiang Province, and reports details of the transactions, their scope and motivation, and the characteristics of households participating in the market for forestland use rights. The results indicate that farmers have become more active in land transactions. The factors influencing transactions are examined in a logit model. Income and sources of income are identified as important factors. Households with higher incomes are likely to buy more land, but households with a higher proportion of income from non-agricultural sources would be more likely to sell land and less likely to buy land. Whether a buyer or seller is satisfied with the price is another important factor for their engagement in a transaction. Some policy implications are discussed in this paper.

► Provide updated information of forestland tenure reforms in the Southern China.
► Detailed investigation of the forestland use rights transaction at household level in China: scale, procedure, duration, contracting forms, geographical range and motivation of the transaction.
► Analysis of the influencing factors of the land use rights transaction using logit model.
► The findings would be useful to conduct other researchers and policy making.