Land transfer and food crop planting decisions in China

Donghui Peng, Jingrong Li, Krishna Paudel and Yunsheng Mi

Applied Economics Letters, 2021, vol. 28, issue 20, 1777-1783

Abstract: This paper proposes a theoretical model to illustrate the relationship between the scale of land transfer-in and farmers’ crop selection behaviour. We use a semiparametric instrumental variable regression model to test this relationship. Data come from a face-to-face interview survey of 2,677 farmers located in nine provinces of China collected in 2014–2015. Results show that the size of land transfer-in has a U-shaped impact on the probability of planting food crops. To guarantee food crop self-sufficiency, the Chinese government should encourage land transfer, foster the mobility of agricultural labourers, and enhance the capacity of the rural financial market.

Date: 2021
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DOI: 10.1080/13504851.2020.1854432

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