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Interlinkage between Farmland Rental and Credit Markets in China

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  • Long, Cheryl
  • Xu, Lihe
  • Yuan, Yan
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Abstract

Capital inputs are by and large ignored in the study of farmland rental in previous literature. With the micro-data of rural household finance survey in year 2009, this paper empirically tests whether credit market promotes the development of farmland rental market in rural China. Results show that loans from banks promote the development of farmland rental market. Furthermore, farmers are more likely to use trade credit to alleviate credit constraints in the process of agricultural production and as a result, trade credit promotes the agricultural land rentals.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 151290.

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Date of creation: 2013
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Handle: RePEc:ags:aaea13:151290

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Keywords: Interlinkage; farmland rental; financing; China; Agricultural and Food Policy; Land Economics/Use; Q15; O17; O12;

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