Exploring the Influence of Land Titling on Farmland Transfer-Out Based on Land Parcel Data

Ting Ye, Wenjian He and Zhiyong Liu
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Ting Ye: School of Business, Nanjing University of Information Science & Technology, Nanjing 210044, China
Wenjian He: School of Business, Nanjing University of Information Science & Technology, Nanjing 210044, China
Zhiyong Liu: Scott College of Business, Networks Financial Institute, Indiana State University, Terre Haute, IN 47809, USA

Sustainability, 2022, vol. 14, issue 5, 1-18

Abstract: Existing literature about the impact of farmland titling on farmland transfer takes no account of farmland plot characteristics, which makes them unable to effectively identify the causal relationship between farmland titling and farmland transfer. After the theoretical analysis, based on land plot level micro-survey data, we adopt the instrumental variable (IV) and conditional mixed process (CMP) methods to ease the endogeneity problem in the model and conduct a quantitative analysis. The results show that the land titling program has significant and positive effects on the transfer-out of farmland. Through a heterogeneity test, we observe a more pronounced promotional effect in regions with a higher economic development level and in farmland transfer deals with government facilitation. Moreover, the further application of a mediating effect model shows that the land titling program increases the net income from farmland transfer-out through increasing the value of farmland and reducing the transaction costs, thus promoting the transferring out of farmland. The findings contribute to providing empirical evidence for how the government may facilitate and support the attaining of more efficient scale operations of farmland.

Keywords: farmland titling program; farmland transfer-out; plot characteristics (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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