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Market-oriented farmland transfer and outsourced machinery services: Evidence from China

Author

Listed:
  • Xu, Mingjun
  • Chen, Changling
  • Ahmed, Memon Aftab

Abstract

This study investigates the effect of market-oriented farmland transfer on farmers’ utilization of outsourced machinery services (OMS), using data from the China Land Economic Survey (CLES) comprising 1,286 renting-in rural households. We utilize the two-stage least square (2SLS) and seemingly unrelated regression (SUR) model to address the endogeneity issue. The results show that market-oriented farmland transfer increases farmers’ OMS adoption, intensity, and cost, and the influence is channeled by reshaping the transaction characteristics related to uncertainty, asset specificity, and transaction frequency of OMS. Further analysis reveals that technology demonstration and machinery purchase subsidies negatively moderate the relationship between market-oriented farmland transfer and OMS. Among farmers with different farm sizes and production tasks, market-oriented farmland transfer significantly increases OMS for smallholder farmers and labor-intensive production tasks.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1214-1226
    DOI: 10.1016/j.eap.2024.02.014
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    More about this item

    Keywords

    Market-oriented farmland transfer; Outsourced machinery services; Rural households; China;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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