IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v95y2024ics1049007824001349.html
   My bibliography  Save this article

Off-farm employment, farmland transfer and agricultural investment behavior: A study of joint decision-making among North China Plain farmers

Author

Listed:
  • Xu, Mingjun
  • Chen, Changling
  • Xie, Jinhua

Abstract

Improving farmers’ ability to make joint decisions on multi-factors is crucial for efficient resource allocation in agriculture, promoting sustainable land use, and fostering rural revitalization. Using survey data from 1780 households in the North China Plain, this study used the Conditional Mixed Process (CMP) joint estimation to address potential endogeneity issues and investigate the interaction of off-farm employment, farmland transfer, and agricultural capital investment. First, the results reveal a significant relationship between the three factors in farmers’ decision-making. Particular, there is a positive relationship between off-farm employment and farmland outflow (ρ = 0.163, P < 0.05), while a negative correlation is observed between farmland outflow and capital investment (ρ = − 0.476, P < 0.01). Secondly, there is heterogeneity in the correlation of joint decision-making regarding off-farm employment types and agricultural capital input types. For risk-averse farmers and farmers with low capital liquidity, off-farm employment is not significantly correlated with farmland outflow, while farmers with land-poor farmers have the strongest positive correlation between farmland inflow and capital input. Third, even if increasing farmland outflow can facilitate the expansion of large-scale land operations, the investment effect of off-farm employment remains unrealized. Finally, the lag of the farmland transfer market relative to the labor transfer market and the rural capital market hinders the growth of optimal-scale agricultural management.

Suggested Citation

  • Xu, Mingjun & Chen, Changling & Xie, Jinhua, 2024. "Off-farm employment, farmland transfer and agricultural investment behavior: A study of joint decision-making among North China Plain farmers," Journal of Asian Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:asieco:v:95:y:2024:i:c:s1049007824001349
    DOI: 10.1016/j.asieco.2024.101839
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049007824001349
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.asieco.2024.101839?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yi Che, 2016. "Off-farm employments and land rental behavior: evidence from rural China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(1), pages 37-54, February.
    2. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
    3. Andrew D. Foster & Mark R. Rosenzweig, 2022. "Are There Too Many Farms in the World? Labor Market Transaction Costs, Machine Capacities, and Optimal Farm Size," Journal of Political Economy, University of Chicago Press, vol. 130(3), pages 636-680.
    4. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
    5. Cao, Yueming & Bai, Yunli & Zhang, Linxiu, 2020. "The impact of farmland property rights security on the farmland investment in rural China," Land Use Policy, Elsevier, vol. 97(C).
    6. Jason Loughrey & Thia Hennessy, 2016. "Farm income variability and off-farm employment in Ireland," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(3), pages 378-401, September.
    7. Zhang, Xiaobo & Yang, Jin & Reardon, Thomas, 2020. "Mechanization outsourcing clusters and division of labor in Chinese agriculture," IFPRI book chapters, in: An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?, chapter 2, pages 71-96, International Food Policy Research Institute (IFPRI).
    8. Tamas Bartus & David Roodman, 2014. "Estimation of multiprocess survival models with cmp," Stata Journal, StataCorp LLC, vol. 14(4), pages 756-777, December.
    9. Weiliang Su & Tor Eriksson & Linxiu Zhang, 2018. "Off-farm employment, land renting and concentration of farmland in the process of urbanization," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(2), pages 338-350, May.
    10. Imai, Katsushi S. & Gaiha, Raghav & Thapa, Ganesh, 2015. "Does non-farm sector employment reduce rural poverty and vulnerability? Evidence from Vietnam and India," Journal of Asian Economics, Elsevier, vol. 36(C), pages 47-61.
    11. Chen, Kai & Brown, Colin, 2001. "Addressing shortcomings in the Household Responsibility System: Empirical analysis of the Two-Farmland System in Shandong Province," China Economic Review, Elsevier, vol. 12(4), pages 280-292.
    12. Nguyen, Duc Loc & Grote, Ulrike & Nguyen, Trung Thanh, 2019. "Migration, crop production and non-farm labor diversification in rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 175-187.
    13. James A. Roumasset, 2007. "Session Discussion: Dynamic Risk Preferences, Poverty Traps, and Thresholds," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 427-429.
    14. Zou, Baoling & Mishra, Ashok K. & Luo, Biliang, 2020. "Grain subsidy, off-farm labor supply and farmland leasing: Evidence from China," China Economic Review, Elsevier, vol. 62(C).
    15. Yazhen Gong & Kathy Baylis & Robert Kozak & Gary Bull, 2016. "Farmers’ risk preferences and pesticide use decisions: evidence from field experiments in China," Agricultural Economics, International Association of Agricultural Economists, vol. 47(4), pages 411-421, July.
    16. Weiliang Su & Tor Eriksson & Linxiu Zhang, 2018. "Off-farm employment, land renting and concentration of farmland in the process of urbanization," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 10(2), pages 338-350, May.
    17. Hubert, Cochet, 2018. "Capital/Labour separation in French agriculture: The end of family farming?," Land Use Policy, Elsevier, vol. 77(C), pages 553-558.
    18. Gao, Xuwen & Shi, Xinjie & Fang, Shile, 2021. "Property rights and misallocation: Evidence from land certification in China," World Development, Elsevier, vol. 147(C).
    19. Zhang, Jian & Mishra, Ashok K. & Hirsch, Stefan, 2021. "Market-oriented agriculture and farm performance: Evidence from rural China," Food Policy, Elsevier, vol. 100(C).
    20. Tan, Jing & Cai, Dongliang & Han, Kefei & Zhou, Kui, 2022. "Understanding peasant household’s land transfer decision-making: A perspective of financial literacy," Land Use Policy, Elsevier, vol. 119(C).
    21. Xu, Mingjun & Chen, Changling & Ahmed, Memon Aftab, 2024. "Market-oriented farmland transfer and outsourced machinery services: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1214-1226.
    22. Jason Loughrey & Thia Hennessy, 2016. "Farm income variability and off-farm employment in Ireland," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 76(3), pages 378-401, September.
    23. Liangliang Gao & Jikun Huang & Scott Rozelle, 2012. "Rental markets for cultivated land and agricultural investments in China," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 391-403, July.
    24. Yi Che, 2016. "Off-farm employments and land rental behavior: evidence from rural China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(1), pages 37-54, February.
    25. Khed, Vijayalaxmi D. & Krishna, Vijesh V., 2023. "Agency and time poverty: Linking decision-making powers and leisure time of male and female farmers of Central India," World Development Perspectives, Elsevier, vol. 29(C).
    26. Murakami, Enerelt & Yamada, Eiji & Sioson, Erica Paula, 2021. "The impact of migration and remittances on labor supply in Tajikistan," Journal of Asian Economics, Elsevier, vol. 73(C).
    27. Daymard, Arnaud, 2022. "Land rental market reforms: Can they increase outmigration from agriculture? Evidence from a quantitative model," World Development, Elsevier, vol. 154(C).
    28. Nguyen, Trung Thanh & Nguyen, Loc Duc & Lippe, Rattiya Suddeephong & Grote, Ulrike, 2017. "Determinants of Farmers’ Land Use Decision-Making: Comparative Evidence From Thailand and Vietnam," World Development, Elsevier, vol. 89(C), pages 199-213.
    29. Wen, Le & Paudel, Krishna P. & He, Qinying, 2023. "Temporary migration and land renting behavior," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1372-1391.
    30. Zhao, Qianyu & Bao, Helen X.H. & Zhang, Zhanlu, 2021. "Off-farm employment and agricultural land use efficiency in China," Land Use Policy, Elsevier, vol. 101(C).
    31. Li, Xingguang & Liu, Jundi & Huo, Xuexi, 2021. "Impacts of tenure security and market-oriented allocation of farmland on agricultural productivity: Evidence from China’s apple growers," Land Use Policy, Elsevier, vol. 102(C).
    32. repec:hal:journl:hal-04085290 is not listed on IDEAS
    33. Diiro, Gracious M. & Fisher, Monica & Kassie, Menale & Muriithi, Beatrice W. & Muricho, Geoffrey, 2021. "How does adoption of labor saving agricultural technologies affect intrahousehold resource allocations? The case of push-pull technology in Western Kenya," Food Policy, Elsevier, vol. 102(C).
    34. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    35. Wang, Weiwen & Gong, Jian & Wang, Ying & Shen, Yang, 2021. "Exploring the effects of rural site conditions and household livelihood capitals on agricultural land transfers in China," Land Use Policy, Elsevier, vol. 108(C).
    36. Liu, Elaine M. & Huang, JiKun, 2013. "Risk preferences and pesticide use by cotton farmers in China," Journal of Development Economics, Elsevier, vol. 103(C), pages 202-215.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xu, Mingjun & Chen, Changling & Ahmed, Memon Aftab, 2024. "Market-oriented farmland transfer and outsourced machinery services: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1214-1226.
    2. Chong Lu & Ailin Wu, 2022. "The impact of migration characteristics on rural migrant households’ farmland use arrangements in China," PLOS ONE, Public Library of Science, vol. 17(8), pages 1-19, August.
    3. Trung Thanh Nguyen & Manh Hung Do, 2022. "Female rural–urban migrants and online marketplaces in emerging economies: Evidence from Thailand and Vietnam," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 9(3), pages 317-342, September.
    4. Trung Thanh Nguyen & Manh Hung Do, 2022. "Female migrants and online market participation in rural Southeast Asia," TVSEP Working Papers wp-026, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    5. Su, Baozhong & Li, Yuheng & Li, Lequn & Wang, Yue, 2018. "How does nonfarm employment stability influence farmers' farmland transfer decisions? Implications for China’s land use policy," Land Use Policy, Elsevier, vol. 74(C), pages 66-72.
    6. Chang, Huayi & Zhang, Junbiao, 2024. "Income growth versus labor loss: The joint impacts of rural-urban migration and off-farm employment on household energy use in rural China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 203(C).
    7. Ubaid Ali & Mazhar Mughal & Lionel de Boisdeffre, 2023. "Migrant remittances, agriculture investment and cropping patterns," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 899-920, September.
    8. Wen, Le & Paudel, Krishna P. & He, Qinying, 2023. "Temporary migration and land renting behavior," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1372-1391.
    9. Huang, Tianyu & Quan, Yiyue & Li, Nan, 2024. "Reallocate to the right place: The heterogeneous effect of internet use on factor allocation of rural households in China," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1328-1346.
    10. Deng, Xin & Xu, Dingde & Zeng, Miao & Qi, Yanbin, 2019. "Does Internet use help reduce rural cropland abandonment? Evidence from China," Land Use Policy, Elsevier, vol. 89(C).
    11. Ruixin Zhang & Lei Luo & Yuying Liu & Xinhong Fu, 2022. "Impact of Labor Migration on Chemical Fertilizer Application of Citrus Growers: Empirical Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-14, June.
    12. Qiangqiang Zhang & Beibei Yan & Xuexi Huo, 2018. "What Are the Effects of Participation in Production Outsourcing? Evidence from Chinese Apple Farmers," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    13. Nguyen, Duc Loc & Grote, Ulrike & Nguyen, Trung Thanh, 2019. "Migration, crop production and non-farm labor diversification in rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 175-187.
    14. Cao, Yueming & Bai, Yunli & Zhang, Linxiu, 2024. "Do the types of agricultural socialized services and their diverse suppliers matter to farmland renting in rural China?," Journal of Asian Economics, Elsevier, vol. 94(C).
    15. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    16. Qiu, Tongwei & Shi, Xinjie & He, Qinying & Luo, Biliang, 2021. "The paradox of developing agricultural mechanization services in China: Supporting or kicking out smallholder farmers?," China Economic Review, Elsevier, vol. 69(C).
    17. Menglan Wang & Manh Hung Do, 2023. "Households’ resilience and local commercialization in Thailand," TVSEP Working Papers wp-030, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    18. Meseret Abatechanie & Baozhong Cai & Fang Shi & Yuanji Huang, 2022. "The Environmental and Socio-Economic Effect of Farmland Management Right Transfer in China: A Systematic Review," Land, MDPI, vol. 11(8), pages 1-21, August.
    19. Zhe Chen & Apurbo Sarkar & Md. Shakhawat Hossain & Xiaojing Li & Xianli Xia, 2021. "Household Labour Migration and Farmers’ Access to Productive Agricultural Services: A Case Study from Chinese Provinces," Agriculture, MDPI, vol. 11(10), pages 1-20, October.
    20. Wang, Ying & Zhang, Qi & Bilsborrow, Richard & Tao, Shiqi & Chen, Xiaodong & Sullivan-Wiley, Kira & Huang, Qingfeng & Li, Jiangfeng & Song, Conghe, 2020. "Effects of payments for ecosystem services programs in China on rural household labor allocation and land use: Identifying complex pathways," Land Use Policy, Elsevier, vol. 99(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:95:y:2024:i:c:s1049007824001349. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.