Social capital, government guidance and contract choice in agricultural land transfer

Linbo He and Jun Huang

PLOS ONE, 2024, vol. 19, issue 5, 1-20

Abstract: This study explores the impact of farm households’ social capital characteristics and local government policies on the selection of farmland transfer contracts in China’s rural industrial revitalization context. Utilizing field research data from 1,979 households in ethnic areas of Hunan Province, this paper constructs an econometric model to assess how farm households’ social capital and local governments’ involvement in rural industrial revitalization influence farmland transfer contract selections. The findings indicate that, lacking government program support, farmers’ social capital significantly affects contract type and duration, but not the rent. Specifically, farmers possessing extensive social capital prefer verbal and short-term contracts (coefficients of 0.525 and 0.643, significant at the 5% level), whereas their influence on rent (coefficient of 2.418, significant at the 5% level) manifests under government program support. These results challenge the conventional theory of farmland transfer contracts and offer substantial empirical support for the development of local government policies in rural industrial revitalization, underlining the critical role of government guidance and social capital in enhancing farmland transfer.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:plo:pone00:0303392

DOI: 10.1371/journal.pone.0303392

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