The Impact of Farmland Management Rights Mortgage Loan on the Agri-Food Industrial Agglomeration: Case of Hubei Province

Yiru Wang, Honggang Lu (), Yuge Chen, Peiwen Yang, Xiangbo Cheng and Fangting Xie
Additional contact information
Yiru Wang: School of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China
Honggang Lu: School of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China
Yuge Chen: School of Business Administration, Zhongnan University of Economics and Law, Wuhan 430073, China
Peiwen Yang: School of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China
Xiangbo Cheng: School of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China
Fangting Xie: School of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China

Land, 2023, vol. 12, issue 7, 1-17

Abstract: The Chinese government encourages rural economic entities to use farmland management rights as collateral for loans, which helps to alleviate multi-level financing needs in rural areas. Based on the panel data of counties in Hubei Province, this paper adopts the Difference-in-Differences (DID) and the intermediary effect model to evaluate the impact of farmland management rights mortgage loans (FMRML) on the agri-food industrial agglomeration (AIA) in China. The study found that the pilot policy has significantly promoted the AIA. Moreover, the regression results remain robust after conducting the placebo test and the Propensity Score Matching Difference-in-Differences (PSM-DID) model, which demonstrates that the improvement effect is stable and long-lasting. From the heterogeneity analysis, it can be seen that the policy of FMRML has a more significant effect on the AIA in mountainous and hilly areas. By further analysis of the mechanism of action, it can be concluded that the pilot policy promotes the AIA by enhancing agricultural specialized production. The main findings can provide information for policymakers in China. The recommendations we have summarized encompass gradually expanding the scope of the pilot policy of FMRML, advancing the institutionalization and legalization of the policy, and promoting agricultural production specialization.

Keywords: agri-food industrial agglomeration; farmland management rights mortgage loan; difference-in-differences method; quasi-natural experiment (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2073-445X/12/7/1389/pdf (application/pdf)
https://www.mdpi.com/2073-445X/12/7/1389/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:12:y:2023:i:7:p:1389-:d:1191955

Access Statistics for this article

Land is currently edited by Ms. Carol Ma

More articles in Land from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().