Three Rights Separation reform and its impact over farm’s productivity: A case study of China

In recent years, China introduced the new “Three Rights Separation” land reforms which has fostered the agricultural productivity in the country. Using data from China Labour Force Dynamics Survey (CLDS), the current study aims to examine the impact of the “Three Rights Separation” of contracted land on agricultural productivity in China. The PSM method is primarily used for impact evaluation. The estimated results show that the farms' management rights registration and certification, and the three rights significantly increased the agricultural productivity and income. However, the impact effect caused by uncoordinated policy mechanisms and relatively slow application of right recognition did not significantly increase farmers’ agricultural production income. Having access to formal financial institutions and specializing in the production of crops directly correlated with a positive marginal effect on agricultural production and household’s income. • Few studies on the productive benefits of the separation of the three rights for farmers. • The impact of the separation of powers in three dimensions is explored through the use of the PSM-DID methodology. • Relevant feasible recommendations are derived from the study findings.