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Interlinkage between Farmland Rental and Credit Markets in China

Author

Listed:
  • Long, Cheryl
  • Xu, Lihe
  • Yuan, Yan

Abstract

Capital inputs are by and large ignored in the study of farmland rental in previous literature. With the micro-data of rural household finance survey in year 2009, this paper empirically tests whether credit market promotes the development of farmland rental market in rural China. Results show that loans from banks promote the development of farmland rental market. Furthermore, farmers are more likely to use trade credit to alleviate credit constraints in the process of agricultural production and as a result, trade credit promotes the agricultural land rentals.

Suggested Citation

  • Long, Cheryl & Xu, Lihe & Yuan, Yan, 2013. "Interlinkage between Farmland Rental and Credit Markets in China," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151290, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea13:151290
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    File URL: http://purl.umn.edu/151290
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    Keywords

    Interlinkage; farmland rental; financing; China; Agricultural and Food Policy; Land Economics/Use; Q15; O17; O12;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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