The Impact of Digital Technology Use on Farmers’ Land Transfer-In: Empirical Evidence from Jiangsu, China

Hengyuan Zeng, Jingru Chen () and Qiang Gao ()
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Hengyuan Zeng: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China
Jingru Chen: School of Economics, University of Bristol, Bristol BS8 1TU, UK
Qiang Gao: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China

Agriculture, 2024, vol. 14, issue 1, 1-16

Abstract: In China, characterized by its vast population and limited land, expanding the scale of agricultural operations through the transfer of land management rights is a crucial pathway to achieving agricultural modernization. Using data from the China Land Economic Survey (CLES), we empirically explored the influence of digital technology use on land transfer-in by farmers. Employing the Probit model and the KHB method, this study examined the mechanisms underlying this relationship and addressed the issue of endogeneity through the Conditional Mixed Process (CMP) model, grounded in the instrumental variable method. Key findings include: (1) both the accessibility and the depth of digital technology use significantly facilitated land transfer-in by farmers. For every one-unit increase in digital technology accessibility, the likelihood of land transfer-in escalated by 6.2%; similarly, a one-unit rise in the depth of digital technology use increased this probability by 2.6%. (2) An analysis of the mechanisms indicates that social networks and credit availability played partial mediating roles in the impact of digital technology accessibility and depth on land transfer-in, with social networks exhibiting a stronger mediation effect. (3) Heterogeneity analysis suggests that the impact of digital technology use on land transfer-in was more pronounced in peri-urban villages and among farmers with higher literacy levels. In light of these findings, we proposed policy recommendations to accelerate the development of rural digital infrastructure, enhance digital skill training for farm households, and vigorously promote rural digital inclusive finance.

Keywords: digital technology; land transfer-in; social networks; credit availability; Probit model; CMP model (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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