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Nonfarm employment, large-scale farm enterprises and farmland transfer in China: a spatial econometric analysis

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  • Dan Fan
  • Chang'an Wang
  • Junqian Wu
  • Qingbin Wang
  • Xiaoqian Liu

Abstract

While farmland transfer in rural China has emerged as a critical issue in China’s land use policy, there are many unanswered questions about the factors behind ongoing farmland transfer. This study uses survey data from 243 villages in Southwest China to examine how nonfarm employment and large-scale farm enterprises might affect farmland transfer. Specifically, this paper employs a spatial autoregressive (SAR) model with a geographic distance weighting matrix at the village level to explore this effect. Empirical results suggest that the proportion of migrant workers and large-scale farm enterprises positively affects the scale of farmland transfer, while the proportion of local nonfarm workers negatively affects it. By comparing estimation results from the SAR with those from the OLS model, it is found that the OLS model may overestimate the positive impact of migrant workers and underestimate the negative impact of local nonfarm workers on farmland transfer.

Suggested Citation

  • Dan Fan & Chang'an Wang & Junqian Wu & Qingbin Wang & Xiaoqian Liu, 2022. "Nonfarm employment, large-scale farm enterprises and farmland transfer in China: a spatial econometric analysis," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 27(1), pages 84-100, January.
    • Handle: RePEc:taf:rjapxx:v:27:y:2022:i:1:p:84-100
    DOI: 10.1080/13547860.2021.1927476
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    Cited by:

    1. Hua Zhang & Ying Li & Hanxiaoxue Sun & Xiaohui Wang, 2023. "How Can Digital Financial Inclusion Promote High-Quality Agricultural Development? The Multiple-Mediation Model Research," IJERPH, MDPI, vol. 20(4), pages 1-19, February.
    2. Lili Chen & Jiquan Peng & Yibei Zhang, 2022. "Research on the Impact of Rural Land Transfer on Non-Farm Employment of Farm Households: Evidence from Hubei Province, China," IJERPH, MDPI, vol. 19(23), pages 1-19, November.
    3. 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.

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