Market-oriented farmland transfer and outsourced machinery services: Evidence from China

Mingjun Xu, Changling Chen and Memon Aftab Ahmed

Economic Analysis and Policy, 2024, vol. 81, issue C, 1214-1226

Abstract: This study investigates the effect of market-oriented farmland transfer on farmers’ utilization of outsourced machinery services (OMS), using data from the China Land Economic Survey (CLES) comprising 1,286 renting-in rural households. We utilize the two-stage least square (2SLS) and seemingly unrelated regression (SUR) model to address the endogeneity issue. The results show that market-oriented farmland transfer increases farmers’ OMS adoption, intensity, and cost, and the influence is channeled by reshaping the transaction characteristics related to uncertainty, asset specificity, and transaction frequency of OMS. Further analysis reveals that technology demonstration and machinery purchase subsidies negatively moderate the relationship between market-oriented farmland transfer and OMS. Among farmers with different farm sizes and production tasks, market-oriented farmland transfer significantly increases OMS for smallholder farmers and labor-intensive production tasks.

Keywords: Market-oriented farmland transfer; Outsourced machinery services; Rural households; China (search for similar items in EconPapers)
JEL-codes: D10 D91 M11 Q12 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1214-1226

DOI: 10.1016/j.eap.2024.02.014

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