Evaluating the role of social capital in land reform: Empirical evidence from rural China

Achieving effective land use is a key objective for national and local governments. This study, proceeds from the angle of social capital, demonstrates the impact of its different types, i.e., social networks, social norms, and trust on the efficacy of land-use policies with respect to China's recent 'Three Rights Separation' (TRS) reforms, evidenced by household survey data from six provinces in eastern, central, and western China. Unlike existing literature, we reconstruct the second-generation collective action framework, shedding light on the more complex role of trust with a new conceptual approach. Furthermore, we develop a multidimensional framework for measurement of social capital and policy effects and use a Structural Equation Model (SEM) approach to provide robust estimates of the relationships between these factors, attending to both economic and social outcomes. The findings reveal three key insights. First, social norms exert a direct effect on social performance of land-use policy, as measured by policy satisfaction, while also having indirect effects through the mediating role of trust. Trust proves to be not only a mere form of social capital but also a critical outcome and driver of effectiveness. Second, well-established social networks and norms significantly promote economic outcomes measured by land investments, with social networks producing a more pronounced effect. Third, building robust social networks enhances another aspect of economic performance, namely farmers' willingness to participate in land transactions and agricultural cooperation. These findings provide valuable implications for how policymakers can harness various forms of social capital to achieve various objectives.