The rural household's entrepreneurship under the land certification in China

Yang, Fang; Liu, Wei; Wen, Ting A icle The u al household's en ep eneu ship unde he land ce i ica ion in China Cogen Economics & Finance P o ided in Coope a ion wi h: Taylo & F ancis G oup Sugges ed Ci a ion: Yang, Fang; Liu, Wei; Wen, Ting (2022) : The u al household's en ep eneu ship unde he land ce i ica ion in China, Cogen Economics & Finance, ISSN 2332-2039, Taylo & F ancis, Abingdon, Vol. 10, Iss. 1, pp. 1-21, h ps://doi.o g/10.1080/23322039.2022.2091088 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/303693 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. 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I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by/4.0/ Cogen Economics & Finance ISSN: (P in ) (Online) Jou nal homepage: www. and online.com/jou nals/oae 20 The u al household’s en ep eneu ship unde he land ce ifica ion in China Fang Yang, Wei Liu & Ting Wen To ci e his a icle: Fang Yang, Wei Liu & Ting Wen (2022) The u al household’s en ep eneu ship unde he land ce ifica ion in China, Cogen Economics & Finance, 10:1, 2091088, DOI: 10.1080/23322039.2022.2091088 To link o his a icle: h ps://doi.o g/10.1080/23322039.2022.2091088 © 2022 The Au ho (s). This open access a icle is dis ibu ed unde a C ea i e Commons A ibu ion (CC-BY) 4.0 license. Published online: 23 Jun 2022. Submi you a icle o his jou nal A icle iews: 845 View ela ed a icles View C ossma k da a Ci ing a icles: 2 View ci ing a icles Full Te ms & Condi ions o access and use can be ound a h ps://www. and online.com/ac ion/jou nalIn o ma ion?jou nalCode=oae 20 GENERAL & APPLIED ECONOMICS | RESEARCH ARTICLE The u al household’s en ep eneu ship unde he land ce i ica ion in China Fang Yang 1,2 , Wei Liu 3 and Ting Wen 4 * Abs ac : As China’s economic g ow h slows down and he p essu e o he eco- nomic downwa d inc eases g adually, he ag icul u al and u al economic de el- opmen aces mo e se ious challenges. Fo una ely, hanks o he China’s u al land ce i ica ion, i gua an ees he secu i y and s abili y o p ope y igh s o land, and p o ides a huge de elopmen space o u al household’s en ep eneu ship, which p omo es ag icul u al and u al economy g ea ly. In o de o in es iga e he impac o he land ce i ica ion on u al household’s en ep eneu ship in China, his pape uses China Ru al Household Panel Su ey da a o he empi ical analysis based on he panel Logi model. The esul s show ha : (1) The land ce i ica ion inc eases he p obabili y o ag icul u al en ep eneu ship by a leas 25%, bu i has no signi ican in luences on non-ag icul u al en ep eneu ship. (2) The u al land ce i ica ion wi h bounda y in luences ag icul u al en ep eneu ship mo e signi ican han ha wi h- ou bounda y, and he land ce i ica ion o household is mo e bene icial o ag i- cul u al u al household’s en ep eneu ship han ha wi hou o household. (3) The land ce i ica ion mainly inc eases p obabili y o ag icul u al en ep eneu ship h ough he land ans e , labo alloca ion, and capi al alloca ion. Mo eo e , he esea ch o his s udy highligh s he impo ance o s anda dizing u al labo ma ke ABOUT THE AUTHORS Fang Yang holds a Ph.D. in Ag icul u al Economics and is cu en ly an Assis an Resea che o Ag icul u al Science and Economics wi h he Pos doc o al Resea ch Cen e o Ag icul u al Bank o China, and School o Economics wi h Peking Uni e si y. She has esea ched and published on a ious issues ela ing o u al household’s beha- io s, land ans e , and u al collec i e economic o ganiza ions. Wei Liu holds a Ph.D. in Ag icul u al Economics and is cu en ly a lec u e in he School o Economics o Chongqing Technology and Business Uni e si y. He has esea ched and published on a ious issues ela ing o u al household’s po - e y, income inequali y, and common p ospe i y. Ting Wen has a doc o ’s deg ee in ag icul u al economics and is cu en ly a ull- ime esea che o Chongqing Resea ch Cen e o High-skilled Pe sonnel De elopmen wi h Chongqing College o Elec onic Enginee ing, and is employed as an associa e p o esso . She s udied and published a ious issues ela ed o a me s’ beha io , land ans e and ag icul u al suppo policies. PUBLIC INTEREST STATEMENT The pu pose o his a icle is o in es iga e he impac o he land ce i ica ion on u al house- hold’s en ep eneu ship in China. This is he esea ch ha is used o highligh he impo ance o u al land sys em e o m in c ea ing condi ions o he u al household’s en ep eneu ship. The u al ins i u ional change can signi ican ly p o- mo e he en ep eneu ship o u al households, economic g ow h, and educe po e y o he de eloping coun ies. This a icle p o ides an e ec i e expe ience suppo o he u u e u al e o m. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 1 o 21 Recei ed: 16 Feb ua y 2022 Accep ed: 14 June 2022 *Co esponding au ho : Ting Wen, Chongqing College o Elec onic Enginee ing, Chongqing Resea ch Cen e o High-skilled Pe sonnel De elopmen , Chongqing, Hubei 401331, China E-mail: [email p o ec ed] Re iewing edi o : Bu cu Be ke, Nigde Uni e si esi, Tu key Addi ional in o ma ion is a ailable a he end o he a icle © 2022 The Au ho (s). This open access a icle is dis ibu ed unde a C ea i e Commons A ibu ion (CC-BY) 4.0 license. and accele a ing land inancial e o m in c ea ing condi ions o ag icul u al en e- p eneu ship, which can p o ide e ec i e da a suppo o u u e u al policy-making. Subjec s: Ag icul u al Economics; Popula ion & De elopmen ; Sus ainable De elopmen ; Ru al De elopmen ; Economics and De elopmen Keywo ds: Ag icul u al economics; land ce i ica ion; ag icul u al en ep eneu ship; non- ag icul u al en ep eneu ship 1. In oduc ion In de eloping coun ies, ag icul u al g ow h as a esul o policy e o m and echnology adop ion emains signi ican o p omo e he en ep eneu ship o u al households, economic g ow h, and educe po e y (Mesele e al., 2022). In ecen decades, ag icul u e and u al a eas ha e been he sho ages o China’s economic g ow h. Whe he China can jump ou o he middle-income ap and ealize mid- e m and long- e m sus ainable o economic g ow h is mainly de e mined by ag icul u al and u al economic de elopmen . As China’s economic g ow h slows down in ecen yea s, he economic downwa d p essu e inc eases g adually and ag icul u al and u al economic de elopmen also ace mo e se e e challenges (Y. Zhou e al., 2020). Inc easing u al household’s income will be he pa h choice o achie e he goal o inclusi e a luence. In 2020, he u baniza ion a e o pe manen esiden s popula ion in China eached 63.89%. Acco ding o a ough es ima ion based on a o al popula ion o 1.4 billion, China s ill had 500 million o u al esiden s. Such a la ge u al popula ion no only cons ains China’s economic g ow h, bu also b ings a de elopmen oppo uni y o China’s economic and social ans o ma ion. Raising he ag icul u al and non- ag icul u al income le el o his g oup is he way o na ow he income gap be ween u ban and u al esiden s, and p omo e inclusi e a luence. Many expe iences in de eloped coun ies ha e p o ed ha en ep eneu ship has signi ican ly posi i e co ela ions wi h income (Be nha d , 1994; Lo s om, 2002; Mcmanus, 2000). On one hand, en ep eneu ship inc eases income o en ep e- neu s by sol ing hei own employmen p oblems. On he o he hand, i inc eases income o employees by abso bing and d i ing employmen s (Su esh e al., 2009). The his o ical e idence o e o m and opening up has demons a ed ha Chinese a me s no only possess ich en ep e- neu ial expe iences, bu also ha e conside able po en ials in en ep eneu ship. Especially in he s age o p omo ing comp ehensi e u al e i aliza ion in China, u al household’s en ep eneu ship become mo e impo an han en ep eneu ial ac i i ies (John & Abigail, 2021), which can no only imp o e u al household’s ag icul u al o non-ag icul u al income, bu also p o ide a d i ing o ce o he ag icul u al o non-ag icul u al indus y e i aliza ion in u al. The e o m o China’s u al land sys em is he main backg ound o he s udy o u al house- hold’s en ep eneu ship, which p o ides land elemen gua an ee o u al household’s ag icul u al en ep eneu ship, o p omo es u al household o ans e he land ou o engage in non- ag icul u al en ep eneu ship. Go e nmen o China (GOC) ini ia ed a new ound o u al land ce i ica ion in 2013 o de e mine and p o ec land p ope y igh s clea ly and e ec i ely, inc eased e iciency o land esou ce alloca ion, and p o ec ed land p ope y igh s and in e es s o u al households. Acco ding o s a is ics o Minis y o Ag icul u e and Ru al A ai s, China has con i med he owne ship o 1.5 billion mu (Appendix A1) o con ac ed land o 200 million o u al households and issued he ce i ica e o he igh o he u al land con ac ing and managemen igh s by No embe 2020. The a e eached 96% (Appendix A2). Regula ized p ope y igh s p o ide a legaliza ion ule and p ocedu e o he use, income and ans e o p ope y igh s h ough he p ocess o issuing ce i ica es, egis a ion and igh con i ma ion (So o, 2000). Exis ing s udies mainly ocus on u ban en ep eneu ial ac i i ies (Jus in e al., 2018) and pay ew a en ions o en ep eneu ial beha io s o u al esiden s (G. Zhou e al., 2017). Nowadays, s udies on u al esiden s’ en ep eneu ship co e h ee le els, including indi idual en ep eneu ship, mig an wo ke s’ en ep eneu ship and u al household’s en ep eneu ship. Mos s udies ocus on mig an wo ke s’ en ep eneu ship since u al mig an wo ke s a e mo e likely o s a Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 2 o 21 en ep eneu ship. The e a e a e s udies on he es wo ypes o en ep eneu ship, especially he u al household’s en ep eneu ship. Exis ing s udies on u al household’s en ep eneu ship ocus on in luencing ac o s and ecogni ion o causali y. Speci ically, in luencing ac o s include indi i- dual cha ac e is ics, amily cha ac e is ics, communi y cha ac e is ics, socioeconomic en i onmen and en ep eneu ship suppo i e policies (Glaese & Ke , 2009; Han & Ha e, 2013; He & Li, 2019). S udies on causali y mainly ocus on in luences o social capi als (Wes lund & Bol on, 2003), human capi als and ma e ial capi als (Lazea , 2005; G. Zhou e al., 2017) o economic capi als (Cai e al., 2018) on en ep eneu ship. This s udy in es iga ed in luences o land ce i ica ion on u al household’s en ep eneu ship. This s udy e iewed p e ious esea ches on u al household’s en ep eneu ship and land ce i- ica ion. Acco ding o exis ing s udies, Besley i s ly es ablished he heo e ical model abou in luences o land owne ship s abili y on in es men , ans e and c edi (Besley, 1993). Fede u he p oposed he heo e ical amewo k which was he basis o ollow-up associa ed s udies. Chinese schola s p oposed a lo o p ac ical e idences (Fede & Nishio, 1998). Huang and Ji es ed in luences o land ce i ica ion on long- e m land in es men o u al households based on he panel acking da a in 2000 and 2008 (Huang & Ji, 2012). They ound ha land ce i ica ion inc eased applica ion o o ganic e ilize s and p omo ed long- e m land in es - men . Based on CHARLS in 2010 and 2012, Cheng e al. discussed in luences o land ce i ica- ion on land ans e in pilo a eas and hey ound ha land ce i ica ion p omo ed land ans e -ou and inc eased land en s (Cheng e al., 2016). Mi e al. discussed he ela ionship be ween land ce i ica ion and c edi a ailabili y o u al household based on 2704 su ey da a in 9 p o inces, China, and ound ha land ce i ica ion has signi ican “De·So o E ec ” and i could imp o e c edi a ailabili y o u al households (Mi e al., 2018). Fu he mo e, some schola s ha e discussed in luences o land ce i ica ion on labo low (Xu e al., 2017; Zhang e al., 2018), income o a me s (Ningm e al., 2018) and ag icul u al p oduc ion managemen (Han e al., 2018; Lin e al., 2018). Wi h he analyses o abo e analyses, his pape mainly s udies he u al household’s en ep e- neu ship in China, which ocuses on he impac s o land ce i ica ion on hem (see he esea ch amewo k in Figu e 1). Th ee imp o emen s a e achie ed in he ollowing h ee aspec s. (1) The esea ch pe spec i e is ela i ely no el. This s udy chose en ep eneu ial beha io s o u al esiden s as he esea ch objec , which o se sho ages o s udies on u al household’s en ep eneu ship. Figu e 1. The esea ch ame- wo k o his pape . Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 3 o 21 (2) I in ol es iche and mo e comp ehensi e esea ch con en s. The new ound o u al land ce i ica ion has been inished. Acco ding o exis ing s udies, land ce i ica ion can c ea e o imp o e elemen condi ions o u al household’s en ep eneu ship o some ex en . By discussing in luences o land ce i ica ion on u al household’s en ep eneu ship, his s udy u he in es iga es di e ences be ween ag icul u al en ep eneu ship and non-ag icul u al en ep eneu ship as well as in luences o di e en ce i ica ion me hods on ag icul u al en ep eneu ship. (3) Resea ch da a is mo e na ionally ep esen a i e and i can co e he whole p ocess o land ce i ica ion. Besides, his s udy uses he unbalanced panel su ey da a o 29 p o inces in 2013, 2015 and 2017 om China Ru al Household Panel Su ey (CRHPS) o Zhejiang Uni e si y, which e lec s basic condi ions o u al household’s en ep eneu ship in China accu a ely. The emainde o his s udy p oceeds as ollows. Sec ion 2 e iews he land ce i ica ion o China and so s ou he ela ionship be ween land ce i ica ion and land igh . In Sec ion 3, he sou ce o esea ch da a o CRHPS and ele an a iables a e in oduced. The impo an esul s, including es ima ed e ec s, he e ogenei y analyses, and in luence mechanism o land ce i ica ion on u al household’s en ep eneu ship, is p esen ed in Sec ion 4, Sec ion 5, and Sec ion 6, espec i ely. Conclusions and policy enligh enmen s a e summa ized in Sec ion 7. 2. New ound o land ce i ica ion: ins i u ional aceback and heo e ical analysis 2.1. B ie e iew on new ound o land ce i ica ion P ope y igh s ha e mul iple economic e ec s, such as incen i e e ec , s abili y e ec , in eg i y e ec (Demse z, 1967).P o ec ion o in ellec ual p ope y igh s has e y impo an in luences on economic g ow h (S. Huang e al., 2005). Fo a long ime, i lacks e ec i e p o ec ions o e u al land p ope y igh s. The ambiguous and ins able land p ope y igh s ha e been es ic ing ag icul u al u al economic de elopmen in China. To add ess hese p oblems, GOC ini ia ed a new ound o u al land ce i ica ion o de e mine and p o ec land p ope y igh s clea ly and e ec i ely, inc eased e iciency o land esou ce alloca ion, and p o ec ed land p ope y igh s and in e es s o a me s. Mo eo e , GOC has inished he con i ma ion, egis a ion and ce i ica ion o land con ac ual managemen igh s, and sol ed ambiguous bounda y o household con ac ed land a eas in 5 yea s. Recen ly, GOC also issued many policy documen s o acili a e e o m in he u al land p ope y igh sys em, including main aining long- e m u al land con ac ela ion, implemen ing owne ship, con ac ing igh and managemen igh o u al land, endowing man- agemen igh and mo gage inancing igh , and so on. All o hese policies aim o es ablish a u al land p ope y igh sys em which has clea a ilia ion, comple e powe s and unc ions, smoo h ans e and s ic p o ec ion. Figu e 2. The logic o a new ound o u al land ce i ica ion in China. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 4 o 21 Compa ed wi h p e ious land ce i ica ion, his ound has mo e ob ious cha ac e is ics (see Figu e 2). Fi s ly, he a ilia ion is clea e . Physical bounda y and p ope y igh bounda y o u al land a e de e mined clea ly. Secondly, powe s and unc ions a e mo e comple e. Based on he s able owne ship, he con ac ing igh has been consolida ing con inuously, while he manage- men igh has been loosening, accompanied wi h ex ension o co e powe s and unc ions o u al land, such as usage, e enues and ans e (Yu e al., 2021). Besides, i pays mo e a en ions o he p ope y a ibu e o land, and allows land asse s and mo gage loan. Thi dly, he p o ec ion is s ic e . I equi es o es ablishing a uni ied and comple e egis a ion managemen sys em and issuing legal land p ope y ce i ica e comp ehensi ely. 2.2. In luencing mechanism o land ce i ica ion on u al household’s en ep eneu ship Based on he ac ual si ua ion o he land p ope y igh sys em in China, his pape de ines u al household’s en ep eneu ship as he ealiza ion o new ca ee choices, new managemen me h- ods, and he upg ading o o iginal p oduc ion me hods. Among o hem, he new ca ee choices (i.e., indus ial o comme cial managemen ) belong o non-ag icul u al en ep eneu ship (Paulsona & Townsend, 2004), while he new managemen me hods and he upg ading o o iginal p oduc ion me hods in ag icul u e a e de ied as ag icul u al en ep eneu ship o u al household. P e ious s udy has shown ha equen adjus men o u al land lead o land agmen a ion, insu icien in es men , decline o soil e ili y and o he p oblems (Deininge & Jin, 2003). Howe e , in ecen yea s, he apid e o m o China’s u al p ope y igh sys em and he imp o emen o he s abili y o land p ope y igh s ha e p o ided a o able condi ions u al household’s en ep eneu ship. Fi s ly, land ce i ica ion p omo es u al household’s en ep eneu ship h ough land ans e . Fo ag icul u al en ep eneu ship, he con ac ing igh and managemen igh sepa a e a e land ce i ica ion, which makes he ans e o managemen igh s smoo he . Ru al households adop ag icul u al en ep eneu ship by expanding land scale h ough land ans e . Limi ed by na ional condi ions o big popula ion and ela i ely ew land esou ces, mos essen ial land o ag icul u al en ep eneu ship comes om he ans e -ou pa . Mo eo e , he new ound o land ce i ica ion is no only bene icial o u al households o main ain he long- e m s abili y o con ac ela ion- ship, bu also is conduci e o p o ec he legi ima e igh s o ans e subjec s. This b ings posi i e e ec s on bo h ans e -in and ans e -ou pa ies. The e o e, land ce i ica ion migh in luence u al household’s en ep eneu ship h ough ans e -in in en ion, ans e -in beha io and ans e - in e m. On one hand, land ce i ica ion inc eases he sa e y o land igh (Kassa, 2018), educes he possibili y o illegal occupa ion o ag icul u al land by he lessee (Yami & Snyde , 2016), and imp o es he powe o a me s o expand he scale o land. Land expansion will p o ide essen ial si es o u al household’s en ep eneu ship. On he o he hand, land ce i ica ion also inc eases he s abili y o land igh (Kassa, 2018). I means ha he land con ac managemen ela ionship is long- e m ixa ion and canno be adjus ed (Cheng e al., 2016), which dec eases he adminis- a i e in e en ion (Wang e al., 2018). Land ce i ica ion s eng hens con idence o a me s in p o ec ing land p ope y igh s (Ye e al., 2018). P ope y igh s p o ec ion and s able expec a ion a e bene icial o ag icul u al en ep eneu s o expand business scale and ex end long e m o in es men in ag icul u al land. Secondly, land ce i ica ion in luences u al household’s en ep eneu ship h ough land alloca- ion. En ep eneu ship is a beha io ha inc eases elemen inpu s. land ce i ica ion may a ec he alloca ion o labo ac o s om labo supply and labo demand. (1) Fo labo supply, land ce i ica- ion wi h ce i ica e gua an ees he land legi ima e in e es s o u al households, so ha hey can no longe wo y abou he ecycling p oblems a e he land is ans e ed ou . The possibili y o land ans e -ou is g ea ly imp o ed (Cheng e al., 2016). Ru al labo is mo e inclined o wi hd aw om household ag icul u al p oduc ion (Xu e al., 2017) which will p omo e land ans e (Che nina e al., 2014; Jan y e al., 2015) and c ea e mo e labo supply. (2) Fo labo demand, en ep eneu - ship means mo e labo inpu . Acco ding o e idences om coun ies like B azil and Vie nam, u al households wi h land ce i ica ion ha e signi ican ly highe land in es men compa ed o hose wi hou ha (Als on e al., 1996; Sain -Maca y e al., 2010). Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 5 o 21 Finally, land ce i ica ion also can in luence u al household’s en ep eneu ship h ough capi al alloca ion. (1) Land ce i ica ion can elie e c edi cons ain o u al households. Since land has ixed geog aphic and spa ial loca ions, inc easing en expec a ion and impossibili y o des uc ion, land can be used as e ec i e mo gage o o mal c edi agencies a e land ce i ica ion (Fede & Nishio, 1998). The e’s signi ican “De·So o E ec ” in u al land ce i ica ion (Mi e al., 2018). Based on he loans wi h land ce i ica ion, i expands he c edi channels o u al households (Golds ein e al., 2014; Piza & Mau icio, 2016), elie es he inancial p essu e agains u al household’s en ep eneu ship, educe he isk o ag icul u al in es men (Besley, 1993), and inc eases he possibili y o en ep eneu ial in es men . (2) Land ce i ica ion can inc ease he income le el o u al households. Land ce i ica ion s eng hens he p ope y igh s and p omo es ee land ans e . Ru al households can acqui e s able incomes om land en s, which highligh s he p ope y unc ion o land. In ac , pe ec ing land ansac ion igh s in ac i e land ma ke can inc ease ba gaining powe and nego ia ion s a us o u al households. Due o he s able expec a- ion o ising en in he u u e and he p emium e ec o land ce i ica ion (Hu & Luo, 2016), i is mo e possible o imp o e ansac ion alue and p ope y income o o he po en ial incomes o land (Lin e al., 2018), which u he inc eases o al incomes o u al households. 3. Da a sou ce and esea ch design 3.1. Da a sou ce This s udy collec ed da a om h ee ounds o CRHPS o Zhejiang Uni e si y in 2013, 2015, and 2017, espec i ely. CRHPS e lec s he economic li e o u al households in China comp ehensi ely. The esea ch da a was mainly di ided in o h ee pa s: (1) Indi idual in o ma ion, including gende , age, cul u al deg ee, and heal h condi ion; (2) Household’s in o ma ion, including head o a household, amily size, inancial condi ions, land ce i ica ion, and ag icul u al p oduc ion and managemen ; (3) Communi ies’ in o ma ion, including popula ion size o he illage, land use o he illage, illage e ain, and land ce i ica ion. The sampling me hod adop ed in CRHPS combines s a i ied, h ee- s age, and scale measu emen p opo ional key sampling. I co e s 24,764 u al Figu e 3. Loca ion o he s udy samples om u al households o China. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 6 o 21 amilies in 29 Chinese p o inces (ci ies and dis ic s) and i has illage-le el, amilies in 29 Chinese p o inces (ci ies and dis ic s) and i has illage-le el, ci y-le el, p o ince-le el, and na ional-le el da a ep esen a i eness. In o de o illus a e he in luence o land ce i ica ion on en ep eneu ship o u al households since 2013, his s udy selec ed some ele an a iables, including land ce i ica ion, household income and expendi u e, and ag icul u al p oduc ion and managemen . Th ough da a e iew, he unbalanced panel da a o u al household o h ee yea s we e sc eened co e ing eas e n, cen al and wes e n China (see Figu e 3). 3.2. Va iable desc ip ion Wi h e e ence o exis ing s udies, his s udy aimed o selec he ollowing a iables combining he esea ch needs. 1. Dependen a iables. This s udy de ined en ep eneu ship o u al households as he dummy a iable o engaging in ag icul u al o non-ag icul u al en ep eneu ship. Conside ing ha s udies which ecognize en ep eneu ship by income le el o employmen ela ions migh ha e e o s (Appendix A3), his esea ch de ined ag icul u al en ep eneu ship as a household which was engaging in ag icul u al p oduc ion and managemen , and he p ac ical managemen a ea is a leas h ee imes he a e age o he cul i a ed a ea pe household in he illage (Appendix A4) (>20 mu). This is basically consis en wi h he de ini ion o He Jing and Li Qinghai (He & Li, 2019): Ag icul u al en ep eneu ship >10 mu o land ans e -in a ea. Acco ding o he p ac ices o Cai Dongliang e al. (Cai e al., 2018), non-ag icul u al en ep eneu ship was judged by he ollowing ques ionnai e i em: “Is you household engaging in indus ial business p oduc ion, and manage- men p ojec s, including sel -employed en ep eneu s, en ing, anspo a ion, online shops, and en e p ises?” 2. Co e independen a iables. The co e independen a iable in his s udy was land ce i ica ion, which was de i ed om wo ques ionnai e i ems: “Does you cul i a ed land ha e he ce i ica e o land con ac ual managemen igh s?” and “When was he ce i ica e o land con ac ual manage- men igh s issued?” Acco ding o he conside a ions o he new ound o land ce i ica ion, his ce i ica ion was limi ed o he land con ac ual managemen igh s issued a e 2013. The land ce i ica ion is e y likely o ga he signi ican “noises” o neglec ing ime o ce i ica ion. 3. Con ol a iables. The con ol a iables o his s udy a e mainly di ided in o indi idual cha ac e is ics, amily cha ac e is ics, communi y cha ac e is ics, as well as human, economic, and social capi al. (1) Popula ion sociological a iables. Rega ding s udies o Chen Wenchao e al. (G. Zhou e al., 2017) and Huang Kai e al. (K. Huang e al., 2020), indi idual cha ac e is ics we e measu ed by gende , age, and he squa e o age. Family cha ac e is ics we e measu ed by amily size, and he bu den a ios o child en and he elde ly. Village cha ac e is ics we e ep esen ed by dis ance om he illage o coun y and illage e ain. Meanwhile, man–land ela ionship in he illage was measu ed by he a e age cul i a ed land a ea pe household in he illage. (2) Capi al accumula ion a iables. Since labo capi al is i al o en ep eneu ship (Lazea , 2005) and i is o en measu ed by educa ion and heal h, his s udy analyzed in luences o labo capi al on en ep eneu ship o u al households h ough educa ional backg ound and physical heal h condi- ion o esponden households. Economic capi al is he ma e ial basis o en ep eneu ial ac i i ies. Capi al sho age is o en an impo an cause o impossible implemen a ion o ailu e o en ep e- neu ship (Hu s & Lusa di, 2004). Mo eo e , household incomes pe capi a in he p e ious s age we e chosen o measu e economic condi ions o u al households. Social capi al can p omo e en ep eneu ship signi ican ly. In China, being a membe o he Communis Pa y o China (CPC) is no only a poli ical iden i y, bu also implies he accessibili y o many social and economic esou ces. The e o e, wi h e e ences o s udy o He Jing and Li Qinghai (He & Li, 2019), his s udy measu ed social capi al by membe ship o CPC in he household. (3) Spa io- empo al dummy a iables. To elimina e in luences o ime-e ec on es ima ion esul s, ime dummy Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 7 o 21 a e widesp ead di icul ies in supe ision o ag icul u al p oduc ion. I is also impossible o ealize e ec i e supe ision o scaled ag icul u al p oduc ion comple ely no ma e how many amily membe s he e a e. Howe e , he non-ag icul u al sec o shows he opposi e. The independen p ocedu es and explici di ision o labo help amily membe s o p o ide mo e e ec i e supe ision o e he p oduc ion managemen . (2) The bu den a io o child en coun e s ag icul u al en ep e- neu ship. Howe e , i is a o able o non-ag icul u al en ep eneu ship. (3) Dis ance o coun y has comple ely di e en in luences on ag icul u al and non-ag icul u al en ep eneu ship. Speci ically, dis ance o coun y p omo es ag icul u al en ep eneu ship, bu i hinde s non-ag icul u al en ep e- neu ship. This can be explained ia he ollowing wo aspec s. The e is “high-cos land” su ounding coun ies o he small land esou ces and he high en . They a e inapplicable o ag icul u e, which has ela i ely low e u n on in es men (ROI). The e also exis highe demands o non-ag icul u al p oduc s, and oppo uni ies su ounding coun ies, which p o ides accessibili y and con enience o p oduc ma ke ing. 5.2. In luences o di e en ce i ica ion me hods on ag icul u al en ep eneu ship The new ound o land ce i ica ion mainly adop s ou ce i ica ion me hods. They can be di ided in o land ce i ica ion wi h no bounda ies (he eina e e e ed o as Me hod 1) and land ce i ica- ion wi h bounda ies (including con i ma ion o sha es and di idends) (he eina e e e ed o as Me hod 2). They also can be di ided in o household-le el land ce i ica ion (he eina e e e ed o as Me hod 3) and o he land ce i ica ion (including land ce i ica ion o collec i es o indi iduals) (he eina e e e ed o as Me hod 4). Since land ce i ica ion has no in luences on non-ag icul u al en ep eneu ship, i s in luences on en ep eneu ship a e p edomina ely a ibu ed o ag icul u al en ep eneu ship. The e o e, his s udy ocuses on he in luences o land ce i ica ion on ag icul- u al en ep eneu ship. The eg ession esul s o ag icul u al en ep eneu ship unde he ou me hods a e shown in Table 5. Me hod 1 ende s be e e ec s on ag icul u al en ep eneu ship. A clea de ini ion on p ope y igh s is he p emise o ansac ion. Since Me hod 2 in ol es ambiguous p ope y igh s, he unce ain y o en ep eneu ship is inc eased o some ex en . The e o e, Me hod 1 has mo e p ac ical signi icance o a clea de ini ion o p ope y igh s. Compa a i ely, Me hod 3 possesses be e e ec s on en ep eneu ship o u al households han Me hod 4. This e lec s ha a household, a decision-making uni , has he lowe cos in equi y ansac ion. Consequen ly, Table 5. Ce i ica ion me hods and ag icul u al en ep eneu ship: a compa a i e analysis Ce i ica ion Me hods Ag icul u al En ep eneu ship Land Ce i ica ion wi h Bounda y Land Ce i ica ion wi hou Bounda y Land Ce i ica ion o Household Land Ce i ica ion wi hou o Household Land ce i ica ion 0.513*** (0.122) 0.419** (0.188) 0.600*** (0.124) 0.372** (0.153) Con ol a iable Con ol Con ol Con ol Con ol In e cep e m −5.143*** (0.350) −5.789*** (0.504) −4.879*** (0.348) −5.377*** (0.507) Obse a ions 16,544 8531 16,033 9046 Wald chi2 374.679 254.264 324.687 219.843 Sigma_u 2.638 3.133 2.591 2.661 ho 0.679 0.749 0.671 0.683 Numbe s in he b acke s a e s anda d e o s. *** e e s o a signi icance le el o 1%. ** e e s o a signi icance le el o 5%, and * e e s o a signi icance le el o 10%. To sa e space, only eg ession esul s o co e independen a iables a e ep esen ed. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 14 o 21 Me hod 3 is mo e likely o inc ease nego ia ion cos han Me hod 4, and he eby inhibi s en hu- siasm o en ep eneu ship. 5.3. Robus ness discussion This s udy mainly adop ed wo ways o obus ness es ing. Fi s ly, ag icul u al en ep eneu ship was de ined as he mul iples o mean o median p opo ion o p ac ical ag icul u al p oduc ion and managemen a ea pe household on a e age cul i a ed land a ea pe household. Combined wi h eg ession esul s o ag icul u al en ep eneu ship in Table 4, esul s in Columns 2 and 3 o Table 6 all show ha land ce i ica ion can p omo e ag icul u al en ep eneu ship signi ican ly no ma e whe he mul iples o mean o median a e applied. Land ce i ica ion inc eased p obabili y o ag icul- u al en ep eneu ship by a ound 30% compa ed o p e ious es ima es. Secondly, ag icul u al en e- p eneu ship was de ined as he mul iples o absolu e o mean o median pe capi a ne income om ag icul u al p oduc ion and managemen . Acco ding o esul s in Columns 4 and 5 in Table 6, land ce i ica ion can p omo e ag icul u al en ep eneu ship. In summa y, eg ession esul s in his s udy a e gene ally eliable. Table 6. Ag icul u al en ep eneu ship unde he s anda ds o a e age cul i a ed land a ea o u al household and pe capi a ne income Recogni ion S anda ds Ag icul u al En ep eneu ship Mean o Cul i a ed Land A ea Median o Cul i a ed Land A ea Median o Income Mean o Income Land ce i ica ion 0.321*** (0.117) 0.306*** (0.142) 0.124** (0.051) 0.139** (0.055) Con ol a iable Con ol Con ol Con ol Con ol In e cep e m −6.878*** (0.468) −7.137*** (0.571) −0.617*** (0.141) −0.837*** (0.152) Obse a ions 19,951 19,951 23,826 23,564 Wald chi2 351.481 299.979 1415.024 1318.413 Sigma_u 3.149 3.005 1.478 1.521 ho 0.751 0.733 0.399 0.413 Numbe s in he b acke s a e s anda d e o s. *** e e s o a signi icance le el o 1%. ** e e s o a signi icance le el o 5%, and * e e s o a signi icance le el o 10%. The mean o p ac ical managemen a ea and a e age cul i a ed land a ea o u al household is 3.16 and he median is 1.08. The mean o pe capi a ne income o household is 7,500 yuan and he median is 1,800 yuan. To sa e space, only eg ession esul s o co e independen a iables a e ep esen ed. Figu e 4. In luencing mechan- ism o land ce i ica ion on ag icul u al en ep eneu ship o u al households. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 15 o 21 6. In luencing mechanism o land ce i ica ion on u al household’s en ep eneu ship Based on he abo e analysis esul s, land ce i ica ion can inc ease he p obabili y o ag icul- u al en ep eneu ship signi ican ly. Thus, h ough which pa hways does he new ound o land ce i ica ion p omo e ag icul u al en ep eneu ship? Combined wi h he p eceding mechanism analysis and wi h e e ence o he mechanism es ing me hod o Zhou e al. (G. Zhou e al., 2017), he in luencing mechanism was e alua ed ho oughly om h ee pe spec i es o land ans e e ec , labo alloca ion e ec , and capi al alloca ion e ec (Appendix A6), which is shown in Figu e 4. 6.1. Land ans e e ec GOC is la gely ocusing on encou aging land ans e and de eloping app op ia e-scaled manage- men , and he eby, p omo ing op imal con igu a ion o land esou ces. A high expec a ion o he new ound o land ce i ica ion was p oposed. Acco ding o he esul s in Table 7, land ce i ica ion canno p omo e land ans e -in, bu inhibi s land ans e -in o some ex en , which aligns wi h he esea ch conclusions o Lin e al. (Lin e al., 2018). Bu i does no align wi h he esea ch conclusions o Holden e al. ha he incen i e e ec o p ope y igh s may imp o e he possibili y o land ans e (Holden e al., 2009). Judging F om he ans e pe iod o he land, land ce i ica- ion s eng hens p ope y igh s and s abilizes expec a ions o u al households, he new ound o land ce i ica ion also expands land ans e -in a ea and ex ends he land ans e -in e m sig- ni ican ly. Thus, inc easing p obabili y o ag icul u al en ep eneu ship acco dingly. 6.2. Alloca ion e ec o labo o ce En ep eneu ship no only implies g ea e labo demands, i also equi es adequa e labo supply. Reg ession esul s o in luences o land ce i ica ion on alloca ion o labo o ce a e lis ed in Table 7. In iew o labo supply, land ce i ica ion inc eases he land ans e -ou a io signi ican ly. This implies ha mo e u al households wi hd aw om ag icul u e and he su plus u al labo o ces en e he labo ma ke ; hence inc easing labo supply g adually. This is consis en wi h he esea ch conclusion o Bezabih and Holden (Bezabih & Holden, 2014), which e i ied he non- ag icul u al employmen p omo ion e ec o land ce i ica ion wi h E hiopian da a. The implemen- a ion o land ce i ica ion policy p omo ed he low o u al labo o ce om ag icul u al sec o o non-ag icul u al sec o . In iew o labo demands, en ep eneu ship implies he la ge -scaled labo inpu and land ce i ica ion inc eases labo inpu s signi ican ly. Table 7. Ve i ica ion esul s o in luence mechanism o land ce i ica ion on ag icul u al en ep eneu ship o u al households In luence Mechanism In luence Channel Coe icien Obse a ions Wald chi2 Land ans e e ec Land T ans e -in −0.433*** (0.060) 22,824 382.145 T ans e -in e m 6.273*** (0.156) 1989 128.173 Alloca ion e ec o labo o ce Libe a ion o household ag icul u al labo o ce 0.584*** (0.075) 19,556 410.146 Employmen inpu 0.183*** (0.064) 23,532 32.903 Alloca ion e ec o capi al Loan wi h land managemen igh s 1.714*** (0.188) 23,532 172.427 Income om p ope ies 0.017*** (0.004) 23,532 98.453 Numbe s in he b acke s a e s anda d e o s. *** e e s o a signi icance le el o 1%. ** e e s o a signi icance le el o 5%, and * e e s o a signi icance le el o 10%. To sa e space, only eg ession esul s o co e independen a iables a e ep esen ed. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 16 o 21 6.3. Alloca ion e ec o capi al Capi al is an economic suppo o ag icul u al en ep eneu ship. The new ound o land ce i ica- ion equi es issuing legal ce i ica e o land p ope y igh s comp ehensi ely, ains he exchange ma ke o land p ope y igh s igo ously, inc eases he possibili y o land becoming e ec i e colla e al o c edi ins i u ions and endows land managemen igh wi h loan inancing powe . In addi ion, land ce i ica ion s eng hens he p ope y a ibu e o ag icul u al land, and house- hold can inc ease o he po en ial income ia o he channels, such as he seconda y ansac ion o p ope y igh s. I can be obse ed om Table 7 ha he possibili y o loan wi h land p ope y and income om household p ope ies a e indeed inc eased signi ican ly a e land ce i ica ion. I also inc eases p ope y income o household. 7. Conclusions and policy enligh enmen s I has been widely accep ed ha p ope y p o ec ion can p omo e economic g ow h. As he undamen al h us o economic g ow h, p ope y igh s ha e mo e di ec in luences on en ep e- neu ship. This s udy uses unbalanced panel da a om CRHPS o Zhejiang Uni e si y in he las h ee yea s o es in luences o he new ound o land ce i ica ion on en ep eneu ship o u al households, especially on ag icul u al en ep eneu ship. Acco ding o he empi ical analysis, land ce i ica ion inc eases he p obabili y o ag icul u al en ep eneu ship by a leas 25% compa ed wi h p e ious o ecas s. A e he use o he p oxy a iable me hod and se ies obus ness es s, he conclusions a e s ill igo ous. Acco ding o u he mechanism analysis, al hough he new ound o land ce i ica ion inhibi s land ans e -in o some ex en , i gene ally inc eases he p obabili y o ag icul u al en ep eneu ship h ough a ious means, such as expanding land ans e -in a ea, ex ending land ans e -in e m (land ans e e ec ), inc easing labo supply and inpu (alloca ion e ec o labo o ce), inc easing p obabili y o loans wi h land managemen igh , household income om p ope ies, and pe capi a ne household income (alloca ion e ec o capi al). Addi ionally, he p omo ion e ec o land ce i ica ion on en ep eneu ship o u al households is mainly a ibu ed o ag icul u al en ep eneu ship. I has no subs an ial in luences on non- ag icul u al en ep eneu ship. Age, bu den a io o he elde ly, educa ion backg ound, and physical heal h can p omo e bo h ag icul u al and non-ag icul u al en ep eneu ship. Howe e , o he con ol a iables in luence ag icul u al and non-ag icul u al en ep eneu ship di e en ly. Family size has posi i e in luences on non-ag icul u al en ep eneu ship, bu i has no in luences on ag icul u al en ep eneu ship. The bu den a io o child en will lowe he p obabili y o ag icul u al en ep eneu - ship, bu inc eases he p obabili y o non-ag icul u al en ep eneu ship. The longe dis ance o coun y is mo e bene icial o ag icul u al en ep eneu ship while he sho e dis ance is mo e conduci e o non-ag icul u al en ep eneu ship. I is o be no ed ha in luences o ce i ica ion me hods on ag icul u al en ep eneu ship a e also he e ogeneous. Land ce i ica ion wi h no bounda ies can in luence ag icul u al en ep eneu ship mo e signi ican ly han land ce i ica ion wi h bounda ies. Compa ed o o he me hods o land ce i ica ion (including land ce i ica ion o collec i es o indi i- duals), household-le el land ce i ica ion can lowe he in e nal nego ia ion cos o u al households; hus, inc easing p obabili y o ag icul u al en ep eneu ship acco dingly. This demons a es ha a household is always a ela i ely easonable decision-making uni in economic li e. 7.1. Enligh enmen s Re o m o he u al land sys em has achie ed posi i e e ec s o e a sho pe iod in China. Fu he mo e, he new ound o land ce i ica ion can p omo e ag icul u al en ep eneu ship sig- ni ican ly. Cu en ly, GOC should ully u ilize he ad an ages o land ce i ica ion o pe ec he exchange ma ke o u al land p ope y igh s, and he eby de elop a ious o ms o mode a e scale managemen , ain new ag icul u al managemen en i ies, and p omo e ag icul u al and u al economic de elopmen s. In he backg ound o u al e i aliza ion, GOC should encou age u al land ans e , s anda dize u al labo ma ke , accele a e e o m inancializa ion o u al land, and con igu e condi ions o elemen imp o emen o ag icul u al en ep eneu ship. I should also conduc he hi d ound o ex ension pilo s a e he second ound o con ac pe iod, aiming o o m duplicable and p omo able e o m expe iences. Fu he mo e, conside a ions should be gi en Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 17 o 21 o igh s and in e es s o ag icul u al en ep eneu s and con ac ed u al households. Expec a ion o ag icul u al p oduc ion and managemen should be s abilized. Concu en ly, essen ial legal gua an ee should be gi en o ag icul u al en ep eneu ship. Acknowledgemen s We g a e ully acknowledge da a suppo om he China Ru al Household Panel Su ey by Zhejiang Uni e si y. Addi ionally, all au ho s ex end g ea g a i ude o he anon- ymous e iewe s and edi o s o hei help ul e iews and c i ical commen s. Funding This esea ch was unded by he Na ional Social Science Fund o China (g an numbe : 20CGL050); Chongqing Social Sciences Planning O ice (g an numbe : 2021YBCS53). Au ho de ails Fang Yang 1,2 Wei Liu 3 Ting Wen 4 E-mail: [email p o ec ed] 1 School o Economics, Peking Uni e si y, Beijing, China. 2 Pos doc o al Resea ch Cen e o Ag icul u al Bank o China, Beijing, China. 3 Resea ch Cen e o Economy o Uppe Reaches o Yang ze Ri e , Chongqing Technology and Business Uni e si y, Chongqing, China. 4 Chongqing College o Elec onic Enginee ing, Chongqing Resea ch Cen e o High-skilled Pe sonnel De elopmen , Chongqing, China. Disclosu e s a emen No po en ial con lic o in e es was epo ed by he au ho s. Ci a ion in o ma ion Ci e his a icle as: The u al household’s en ep eneu ship unde he land ce i ica ion in China, Fang Yang, Wei Liu & Ting Wen, Cogen Economics & Finance (2022), 10: 2091088. Re e ences Als on, L. J., Libecap, G. D., & Schneide , R. (1996). The de e minan s and impac o p ope y igh s: land i les on he B azilian on ie . Jou nal o Law Economics and O ganiza ion, 12(1), 25–61. h ps:// doi.o g/10.1093/ox o djou nals.jleo.a023360 Be nha d , I. (1994). 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A2 Xinhua News, Minis y o Ag icul u e and Ru al A ai s: The ce i ica ion a e o land ce i ica- ion eached 96%. A3 The sho ages o ecognizing en ep eneu ship h ough income le el a e in oduced as ollows: Fi s ly, i igno es he si ua ion ha some en ep eneu s ha e ze o o nega i e income be o e en ep eneu ship. Secondly, he g oup who ha e ela i ely high-income le els, such as illage cad es, a e included in en ep eneu s. The sho ages o ecognizing en ep eneu ship h ough employmen ela ionship a e ha in busy a ming season, non-en ep eneu s migh hi e o he s in ag icul u al p oduc ion and managemen a ai s i egula ly. Howe e , CRHPS da a in 2013 and 2015, espec i ely, a e di icul o ecognize whe he he e is long- e m employmen ela ions. A4 A e age cul i a ed land a ea pe household in a illage a he han he household cul i a ed a ea was used o de ine ag icul u al en ep eneu ship o ollowing easons: 1) I is common o see land adjus men in some u al a eas in China. Some household cul i a ed land a ea changes g ea ly, while a e age cul i a ed land a ea pe household is gene ally s able. 2) Mul iples o a e age cul i a ed land a ea pe household can elimina e si ua ions ha some illages o iginally possess ich o a e land esou ces, while mul iples o household cul i a ed land migh wi ness si ua ions ha some households ha e e y small o la ge cul i a ed land a ea, which migh induce g ea e o s. O cou se, his p oblem migh exis i ecognizing en ep eneu ship o u al household by ans e -in a ea alone. A5 Since Documen No. 1 in 2013 emphasized comp ehensi e land ce i ica ion in 5 yea s. This implies ha land ce i ica ion is necessa y no ma e wha he condi ions o communi ies a e. The e o e, i is easy o de e mine ha di e en om p e ious e o m pilo s on land ce i ica ion, i mus be selec ed in ad ance. The sel -in o med issues can basically be igno ed in his comp e- hensi e land ce i ica ion. A6 To gua an ee eliabili y o es ima ion esul s, con ol a iables o mechanism es ing shall emain consis en , which a e gende , age, squa e o age, amily size, bu den a ios o child en and he elde ly, a e age cul i a ed a ea o u al households, dis ance om illage o coun y, e ain, egional dummy a iable, e c. Yang e al., Cogen Economics & Finance (2022), 10: 2091088 h ps://doi.o g/10.1080/23322039.2022.2091088 Page 20 o 21 © 2022 The Au ho (s). This open access a icle is dis ibu ed unde a C ea i e Commons A ibu ion (CC-BY) 4.0 license. You a e ee o: Sha e — copy and edis ibu e he ma e ial in any medium o o ma . Adap — emix, ans o m, and build upon he ma e ial o any pu pose, e en comme cially. The licenso canno e oke hese eedoms as long as you ollow he license e ms. Unde he ollowing e ms: A ibu ion — You mus gi e app op ia e c edi , p o ide a link o he license, and indica e i changes we e made. 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