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Does land transfer-out facilitate an upgrade in farmers’ consumption

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  • Zhang, Jian
  • Li, Ting
  • He, Yuhui
  • Li, Zhaohui

Abstract

This study investigates the impact of rural land transfer-out on farmers' consumption upgrades in China. Using data from 2020 to 2022 China Family Panel Studies (CFPS) survey, we empirically examine the effects of land transfer-out on farmers' consumption upgrading through the OLS model, finding that land transfer-out has a significant positive impact on consumption upgrading. Meanwhile, it's found that the total income, non-agricultural employment, and consumption conception are the core mechanisms. Through the robustness test, it is found that the research results are robust. To address potential endogeneity issues, we employ the Relief Degree of Land Surface (RDLS) as the instrumental variable to re estimate. The results remain robust, indicating a causal relationship between land transfer-out and farmers' consumption upgrades. Heterogeneity analysis shows that there are differences in the effect of land transfer on farmers' consumption upgrading in provinces with different land resource endowments. The role of land transfer-out in upgrading farmers' consumption varies among provinces with different levels of economic development. These findings have important policy implications for promoting rural economic development and enhancing farmers' living standards in China.

Suggested Citation

  • Zhang, Jian & Li, Ting & He, Yuhui & Li, Zhaohui, 2025. "Does land transfer-out facilitate an upgrade in farmers’ consumption," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 2219-2233.
    • Handle: RePEc:eee:ecanpo:v:85:y:2025:i:c:p:2219-2233
    DOI: 10.1016/j.eap.2025.03.004
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