Factors affecting agricultural land transfer-out in China: a semiparametric instrumental variable model

Meishan Jiang, Jingrong Li, Krishna Paudel and Yunsheng Mi

Applied Economics Letters, 2019, vol. 26, issue 20, 1729-1733

Abstract: This paper uses a semiparametric instrumental variable model to study the determinants of agricultural land transfer-out, using face-to-face survey data collected in 2014 from 2,677 farmers in nine provinces of China. Results show that variables, such as the number of parcels of land, the collective’s total land transfer-out, and the availability of a transportation network, have significant linear positive effects on households’ farmland transfer-out. Having family members with a lower educational level affect land transfer-out negatively. Landholding size and land idling have an inverted-U and L shaped impact, respectively, on land transfer-out. Results also indicate that agricultural income ratio has an overall negative influence on land transfer out. Land transfer-out has the potential to provide opportunities to earn additional income from the land, increase land productivity, and reduce poverty in rural China.

Date: 2019
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DOI: 10.1080/13504851.2019.1593929

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