Impact of Collective Forestland Tenure Reform on Household Forestry Production Efficiency: Micro-Level Evidence from China

Jian Wei¹Fangzheng Wang¹Tianwei Xie²Hanxiang Luo^3*

• ¹Fujian Agriculture and Forestry University, FUZHOU, China
• ²Dongshin University, Naju, Republic of Korea
• ³Huazhong Agricultural University, FUZHOU, China

Improving forestry production efficiency is vital for promoting rural economic development and achieving ecological modernization in China. This study investigates the impact of collective forestland tenure reform on household-level forestry production efficiency, using panel data from 13,536 rural households in 18 counties across nine provinces in China, covering the years 2003 and 2007–2019. A translog stochastic frontier production function model is employed to estimate production efficiency, and Tobit and mediation effect models are used to explore the pathways through which tenure reform influences outcomes.Results show that collective forestland tenure reform significantly enhances forestry production efficiency, mainly through three mechanisms: increasing production inputs, expanding forestland management scale, and improving access to credit. Furthermore, heterogeneity analysis reveals that the reform's positive effects are more pronounced among households with pure farming livelihoods, bamboo or economic forest cultivation, and in economically less-developed and forest-rich regions.The findings highlight the critical role of tenure security in stimulating investment incentives, promoting efficient resource reallocation, and facilitating financial inclusion in rural forestry sectors. Policy efforts should focus on consolidating forestland tenure security, developing transparent forestland transfer markets, and innovating credit systems to maximize the benefits of tenure reform. Special attention should be given to supporting the sustainable management of long-cycle timber forests to balance economic returns with ecological goals.