IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v12y2023i8p1521-d1207309.html
   My bibliography  Save this article

Clan Networks, Spatial Selection, and Farmland Transfer Contracts: Evidence from China

Author

Listed:
  • Mingyong Hong

    (School of Economics, Guizhou University, Guiyang 550025, China)

  • Jiao Long

    (School of Economics, Guizhou University, Guiyang 550025, China)

  • Wenjun Zhuo

    (School of Economics and Management, Beijing Forestry University, Beijing 100083, China)

Abstract

Contracts play a crucial role in the reform of land markets and the process of farmland transfer. This study examines how spatial distance and clan networks impact the choice of farmland transfer contracts based on micro-level survey data from farmer households in China. Our research findings offer valuable insights into the role of contracts as a governance tool in land market reform and provide important implications for policymakers and stakeholders. In this study, we reveal that spatial distance significantly influences the selection of farmland transfer contracts. When farmers face long spatial distances, they tend to prefer written contracts to regulate the transfer relationship. This preference helps to mitigate information asymmetry and cooperation risks, ensuring a more secure and efficient transfer process. Additionally, our findings show that clan networks also play a significant role in the choice of farmland transfer contracts. Strong clan networks in high-density areas often have well-defined social norms and codes of conduct. As a result, farmers in these areas are more likely to opt for written contracts, which provide a formalized framework for governing farmland transfers. Furthermore, the density of the clan network acts as a moderator in the relationship between spatial distance and contract choice. A dense clan network intensifies the influence of spatial distance on contract choice, especially when dealing with long spatial distances. This suggests that social networks and community dynamics play a crucial role in shaping farmers’ contract preferences in farmland transfer. In conclusion, this study highlights the importance of contracts as a governance tool in land market reform and provides insights into the influence of spatial distance and clan networks on the choice of farmland transfer contracts. Policymakers and stakeholders involved in land market reforms should consider the findings of this study when designing policies and interventions. By understanding the dynamics surrounding farmland transfer, policymakers can develop more effective strategies to promote secure and efficient land transactions in the context of market-oriented reforms.

Suggested Citation

  • Mingyong Hong & Jiao Long & Wenjun Zhuo, 2023. "Clan Networks, Spatial Selection, and Farmland Transfer Contracts: Evidence from China," Land, MDPI, vol. 12(8), pages 1-17, July.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:8:p:1521-:d:1207309
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/12/8/1521/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/12/8/1521/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tasso Adamopoulos & Loren Brandt & Jessica Leight & Diego Restuccia, 2022. "Misallocation, Selection, and Productivity: A Quantitative Analysis With Panel Data From China," Econometrica, Econometric Society, vol. 90(3), pages 1261-1282, May.
    2. Ke Xu & Xianli Xia, 2023. "The Influence of Farmers’ Clan Networks on Their Participation in Living Environment Improvement during the Time of Transition in Traditional Rural China," Agriculture, MDPI, vol. 13(5), pages 1-22, May.
    3. Huang, Liangxiong & Ma, Minghui & Wang, Xianbin, 2022. "Clan culture and risk-taking of Chinese enterprises," China Economic Review, Elsevier, vol. 72(C).
    4. Fan, Haichao & Li, Chang & Xue, Chang & Yu, Miaojie, 2023. "Clan culture and patterns of industrial specialization in China," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 457-478.
    5. Chang, Shuhua & Li, Anqi & Wang, Xin & Wang, Xinyu, 2022. "Joint optimization of e-commerce supply chain financing strategy and channel contract," European Journal of Operational Research, Elsevier, vol. 303(2), pages 908-927.
    6. Thomas Brzustowski & Alkis Georgiadis-Harris & Balázs Szentes, 2023. "Smart Contracts and the Coase Conjecture," American Economic Review, American Economic Association, vol. 113(5), pages 1334-1359, May.
    7. Anette Ruml & Catherine Ragasa & Matin Qaim, 2022. "Contract farming, contract design and smallholder livelihoods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 24-43, January.
    8. Bahati, Ibrahim & Martiniello, Giuliano & Abebe, Gumataw Kifle, 2022. "The implications of sugarcane contract farming on land rights, labor, and food security in the Bunyoro sub-region, Uganda," Land Use Policy, Elsevier, vol. 122(C).
    9. Cheung, Steven N S, 1969. "Transaction Costs, Risk Aversion, and the Choice of Contractual Arrangements," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 23-42, April.
    10. Fang, Hang & Chen, Qianheng & Delgado, Michael S. & He, Qinying, 2023. "Peer correlations in income: Evidence from a Guanxi network in rural China," Economics Letters, Elsevier, vol. 222(C).
    11. Neele Balke & Thibaut Lamadon, 2022. "Productivity Shocks, Long-Term Contracts, and Earnings Dynamics," American Economic Review, American Economic Association, vol. 112(7), pages 2139-2177, July.
    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. Yiming Zhang & Rui Yang & Kai Zhao & Xiangzhi Kong, 2023. "Fertilizer Application in Contract Farming: A Risk Analysis," Land, MDPI, vol. 12(8), pages 1-20, July.
    2. Chaoran Chen, 2017. "Untitled Land, Occupational Choice, and Agricultural Productivity," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 91-121, October.
    3. Aragón, Fernando M. & Restuccia, Diego & Rud, Juan Pablo, 2022. "Are small farms really more productive than large farms?," Food Policy, Elsevier, vol. 106(C).
    4. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    5. Ayala-Cantu, Luciano & Morando, Bruno, 2020. "Rental markets, gender, and land certificates: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    6. Tamara Todorova, 2006. "Rental Rate and the Dynamics of Capital," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 58-68.
    7. Gottlieb, Charles & Grobovšek, Jan, 2019. "Communal land and agricultural productivity," Journal of Development Economics, Elsevier, vol. 138(C), pages 135-152.
    8. Tang, Rongsheng & Tang, Yang, 2022. "Market formation in China from 1978," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    9. Pulido, José & Varón, Alejandra, 2024. "Misallocation of the immigrant workforce: Aggregate productivity effects for the host country," Economic Modelling, Elsevier, vol. 130(C).
    10. Shuai Qin & Hong Chen & Tuyen Thi Tran & Haokun Wang, 2022. "Analysis of the Spatial Effect of Capital Misallocation on Agricultural Output—Taking the Main Grain Producing Areas in Northeast China as an Example," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    11. Marijn A. Bolhuis & Swapnika R. Rachapalli & Diego Restuccia, 2021. "Misallocation in Indian Agriculture," NBER Working Papers 29363, National Bureau of Economic Research, Inc.
    12. Hertel, By Thomas W. & Baldos, Uris L.C. & Fuglie, Keith O., 2020. "Trade in technology: A potential solution to the food security challenges of the 21st century," European Economic Review, Elsevier, vol. 127(C).
    13. Tasso Adamopoulos & Loren Brandt & Chaoran Chen & Diego Restuccia & Xiaoyun Wei, 2022. "Land Security and Mobility Frictions," Working Papers tecipa-717, University of Toronto, Department of Economics.
    14. Krug, B. & Hendrischke, H., 2006. "Framing China: Transformation and Institutional Change," ERIM Report Series Research in Management ERS-2006-025-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Mark Casson, 2018. "The Theory of International Business: The Role of Economic Models," Management International Review, Springer, vol. 58(3), pages 363-387, June.
    16. Michalis Drouvelis & Julian C. Jamison, 2015. "Selecting public goods institutions: Who likes to punish and reward?," Southern Economic Journal, John Wiley & Sons, vol. 82(2), pages 501-534, October.
    17. Stavros Sindakis & Saloome Showkat & Jiafu Su, 2023. "Unveiling the Influence: Exploring the Impact of Interrelationships among E-Commerce Supply Chain Members on Supply Chain Sustainability," Sustainability, MDPI, vol. 15(24), pages 1-27, December.
    18. James Kai-sing Kung, 2022. "On the Origins and Persistent Effects of the World’s First Meritocratic Institution," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 563-581, December.
    19. Qingen Gai & Naijia Guo & Bingjing Li & Qinghua Shi & Xiaodong Zhu, 2021. "Migration Costs, Sorting, and the Agricultural Productivity Gap," Working Papers tecipa-693, University of Toronto, Department of Economics.
    20. Chang, Shuhua & Li, Anqi & Wang, Xinyu & Zhang, Jiayue, 2023. "Optimal combination of platform channel contract and guarantee financing strategy in e-commerce market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 172(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:gam:jlands:v:12:y:2023:i:8:p:1521-:d:1207309. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.