This paper finds that the existence of strong kinship networks tends to limit state interference with private property use in rural China by protecting villagers against unwanted government land takings. It then distinguishes kinship networks from other kinds of social networks by showing that their deterrence effect against coercive takings is far more significant and resilient under conditions of prevalent rural-urban migration than deterrence by neighborhood cooperatives and religious groups. Finally, the paper attempts to identify and differentiate between various possible mechanisms behind these effects: It argues that kinship networks protect private property usage mainly through encouraging social reciprocity between kinsmen, which facilitates collective action against coercive takings. Kinship networks are more effective than neighborhood cooperatives or religious groups at sustaining reciprocity over long distances and, therefore, are less affected by rural-urban migration. Altruism between kinsmen, however, does not emerge from the data as a major factor.
and the NBER Summer Institute Meetings for Development and Productivity and for Enterpreneurship for their comments and suggestions. Guofang Huang, Zhichao Wei, Liu Yanliang and Ning Ding provided excellent research assistance. This research was funded by the Australian Research Council and Harvard Business School. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
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