Abstract
The impacts of land titling on investment incentives among farmers with different land reallocation experiences are studied in this work. Ordered Probit model and 2SLS are employed to estimate the survey data collected from 2704 households in rural countries in China. We find that, generally, land titling can substantially promote investment incentive among farmers. However, the impacts vary among farmers with different land reallocation experiences. Specifically, land titling positively affects farmers without land reallocation experience, but it negatively affects those farmers who experienced big reallocation. Land titling has an investment incentive effect on China’s special agricultural land system, where farmers only have contract rights of land. However, big reallocation should be heavily restricted to guarantee the investment incentive effect of land titling.
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