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Drivers of household entry and intensity in land rental market in rural China

Drivers of household entry and intensity in land rental market in rural China Purpose– Economic reforms in rural China have led to the emergence of land and labor markets. The development of rural land-rental markets can improve agricultural productivity and equity by facilitating transfers of land to more productive farmers and facilitating the participation in the non-farm economy of less productive farmers. In contrast to the burgeoning development of off-farm labor markets, the development of rural land-rental market has lagged. The purpose of this paper is to analyze the factors affecting households’ entry and transaction intensity in rural land-rental markets, especially the effects of land tenure and off-farm employment. Design/methodology/approach– Based on a field survey data of 479 household in Henan Province in 2009, the authors used Cragg’s double-hurdle model to identify the determinants for households’ land-rental participation and its transaction amount. Findings– Off-farm employment is one of main driving factor for household’s land rent-out decision. Tenure insecurity reduces both the propensity and the magnitude of rental market transactions. Land use certificates significantly contribute to participation in land-rental markets and the rental amount. Originality/value– This paper treats household land-rental market participation as a related two-step process, focussing on both land transfer and its transaction amount. This paper also builds on a broad view, including analysis on both demand and supply side of land-rental market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Drivers of household entry and intensity in land rental market in rural China

China Agricultural Economic Review , Volume 8 (2): 20 – May 3, 2016

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1756-137X
DOI
10.1108/CAER-06-2014-0062
Publisher site
See Article on Publisher Site

Abstract

Purpose– Economic reforms in rural China have led to the emergence of land and labor markets. The development of rural land-rental markets can improve agricultural productivity and equity by facilitating transfers of land to more productive farmers and facilitating the participation in the non-farm economy of less productive farmers. In contrast to the burgeoning development of off-farm labor markets, the development of rural land-rental market has lagged. The purpose of this paper is to analyze the factors affecting households’ entry and transaction intensity in rural land-rental markets, especially the effects of land tenure and off-farm employment. Design/methodology/approach– Based on a field survey data of 479 household in Henan Province in 2009, the authors used Cragg’s double-hurdle model to identify the determinants for households’ land-rental participation and its transaction amount. Findings– Off-farm employment is one of main driving factor for household’s land rent-out decision. Tenure insecurity reduces both the propensity and the magnitude of rental market transactions. Land use certificates significantly contribute to participation in land-rental markets and the rental amount. Originality/value– This paper treats household land-rental market participation as a related two-step process, focussing on both land transfer and its transaction amount. This paper also builds on a broad view, including analysis on both demand and supply side of land-rental market.

Journal

China Agricultural Economic ReviewEmerald Publishing

Published: May 3, 2016

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