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Land transfer in rural China: incentives, influencing factors and income effects

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  • Kaili Peng
  • Chen Yang
  • Yao Chen

Abstract

Land transfer incentives and their effect on farmers’ income in developing countries have been widely examined in the literate, but little is known about the driving mechanism of rural household income effect during land transfer. To fill in this gap, this paper explains the incentives of land transfer, analyses the influencing factors of farmers’ decision on land transfer, then measures the income effects of land transfer and identifies the main sources of income effects, utilizing open-access data collected through the China Family Panel Studies. The empirical results show that land flow out or in is beneficial to raise farmers’ income, indicating that the income effects have a positive feedback to farmers’ decision on land transfer. Further analyses reveal that land flow-out farmers and land flow-in farmers have different main sources of income growth. Our finding suggest that optimizing the incentive role of China’s existing rural land property system can help orderly flow of rural land resources, which subsequently increases rural household income.

Suggested Citation

  • Kaili Peng & Chen Yang & Yao Chen, 2020. "Land transfer in rural China: incentives, influencing factors and income effects," Applied Economics, Taylor & Francis Journals, vol. 52(50), pages 5477-5490, October.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5477-5490
    DOI: 10.1080/00036846.2020.1764484
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    Cited by:

    1. Ying Cheng & Yuan Hu & Weizhong Zeng & Zhongbao Liu, 2022. "Farmer Heterogeneity and Land Transfer Decisions Based on the Dual Perspectives of Economic Endowment and Land Endowment," Land, MDPI, vol. 11(3), pages 1-13, February.
    2. Gong, Maogang & Elahi, Ehsan, 2022. "A nexus between farmland rights, and access, demand, and amount of agricultural loan under the socialist system of China," Land Use Policy, Elsevier, vol. 120(C).
    3. Keyan Li & Can Liu & Junlong Ma & Martinson Ankrah Twumasi, 2023. "Can Land Circulation Improve the Health of Middle-Aged and Older Farmers in China?," Land, MDPI, vol. 12(6), pages 1-16, June.
    4. Baomin Cui & Lingling Tang & Jianxu Liu & Songsak Sriboonchitta, 2023. "How Does Land Transfer Impact the Household Labor Productivity in China? Empirical Evidence from Survey Data in Shandong," Land, MDPI, vol. 12(4), pages 1-24, April.
    5. Wenjing Han & Zhengfeng Zhang & Xiaoling Zhang & Li He, 2021. "Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China," Land, MDPI, vol. 10(9), pages 1-22, August.
    6. Weiguo Fan & Nan Chen & Wei Yao & Mengmeng Meng & Xuechao Wang, 2021. "Integrating Environmental Impact and Ecosystem Services in the Process of Land Resource Capitalization—A Case Study of Land Transfer in Fuping, Hebei," Sustainability, MDPI, vol. 13(5), pages 1-18, March.
    7. Haibo Lei & Qin Su, 2023. "Does the Use of Digital Finance Affect Household Farmland Transfer-Out?," Sustainability, MDPI, vol. 15(16), pages 1-18, August.
    8. Juan Wu & Wenjing Yu & Xiaobing Liu & Yali Wen, 2022. "Analysis of Influencing Factors and Income Effect of Heterogeneous Agricultural Households’ Forestland Transfer," Land, MDPI, vol. 11(9), pages 1-17, September.
    9. Ai Rui & Xiao Shishun & Martinson Ankrah Twumasi, 2022. "Does Rural Operation System Reform Enhance Agricultural Output? Evidence from Sichuan Province," Land, MDPI, vol. 11(12), pages 1-18, December.
    10. Cheng, Ying & Hu, Yuan & Zeng, Weizhong & Liu, Zhongbao, 2022. "Farmer heterogeneity and land transfer decisions based on the dual perspectives of economic endowment and land endowment," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(3).
    11. Jiafeng Gu, 2024. "Neighborhood Does Matter: Farmers’ Local Social Interactions and Land Rental Behaviors in China," Land, MDPI, vol. 13(1), pages 1-17, January.
    12. Hua Zhang & Qiwang Zhang & Man An & Zixuan Zhang & Nanqiao He, 2023. "Unveiling the Impact of Digital Financial Inclusion on Low-Carbon Green Utilization of Farmland: The Roles of Farmland Transfer and Management Scale," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    13. Lian Ke & Shan Cheng & Diqiang Chen & Ying Li, 2023. "Why Is the Income Effect of Farmland Transfer Inconsistent between Transferred-Out and Transferred-In Households?," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    14. Zheng Wang & Mingwei Yang & Zhiyong Zhang & Yingjuan Li & Chuanhao Wen, 2022. "The Impact of Land Transfer on Vulnerability as Expected Poverty in the Perspective of Farm Household Heterogeneity: An Empirical Study Based on 4608 Farm Households in China," Land, MDPI, vol. 11(11), pages 1-16, November.
    15. Zhen Liu, 2022. "Rural Population Decline, Cultivated Land Expansion, and the Role of Land Transfers in the Farming-Pastoral Ecotone: A Case Study of Taibus, China," Land, MDPI, vol. 11(2), pages 1-17, February.
    16. 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).
    17. Si, Ruishi & Lu, Qian & Aziz, Noshaba, 2021. "Does the stability of farmland rental contract & conservation tillage adoption improve family welfare? Empirical insights from Zhangye, China," Land Use Policy, Elsevier, vol. 107(C).
    18. Weiguo Fan & Wei Yao & Kehan Chen, 2023. "Integrating Energy Systems Language and Emergy Approach to Simulate and Analyze the Energy Flow Process of Land Transfer," Land, MDPI, vol. 12(5), pages 1-24, May.
    19. Lijuan Xu & Abbas Ali Chandio & Jingyi Wang & Yuansheng Jiang, 2022. "Does Farmland Tenancy Improve Household Asset Allocation? Evidence from Rural China," Land, MDPI, vol. 12(1), pages 1-22, December.
    20. Yi Luo & Dong Huang & Xue Qu & Laping Wu, 2022. "An Inverse Relationship between Farm Size and Rice Harvest Loss: Evidence from China," Land, MDPI, vol. 11(10), pages 1-14, October.
    21. Xueqi Wang & Zhongguo Xu & Guan Li & Yuefei Zhuo & Wei Zou, 2023. "Farmland Transfer and Income Distribution Effect of Heterogeneous Farmers with Livelihood Capital: Evidence from CFPS," Land, MDPI, vol. 12(7), pages 1-20, July.
    22. Yijie Wang & Guoyong Liu & Bangbang Zhang & Zhiyou Liu & Xiaohu Liu, 2022. "Coordinated Development of Farmland Transfer and Labor Migration in China: Spatio-Temporal Evolution and Driving Factors," Land, MDPI, vol. 11(12), pages 1-19, December.
    23. Chen, Conghui & Liu, Bing & Wang, Ziyou, 2023. "Can land transfer relax credit constraints? Evidence from China," Economic Modelling, Elsevier, vol. 122(C).
    24. 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.

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