Factors affecting agricultural land transfer-in in China: a semiparametric analysis

ABSTRACT

We use interview survey data collected randomly from 2677 farm households in nine provinces of China to understand the role of demographic, economic, land, and village characteristics on agricultural land transfer-in by farmers. Results show that variables such as borrowing from informal sources, household labour availability, percentage of total income from agricultural sources, and the household with village cadre have significant positive effects on land transfer-in. Low economic development and low transportation network availability in a county reduces land transfer-in. We also find that two variables (land holding and land idling) should be entered into the model nonparametrically. Land holding and land idling have U- and L-shaped impacts on land transfer-in, respectively. Land transfer-in has endowment equilibrium and provides Chinese households more opportunities to earn agricultural income, thereby reducing rural poverty.

KEYWORDS:

• Semiparametric model
• land transfer-in
• parametric determinants
• nonparametric determinants

JEL CLASSIFICATION:

• Q15
• C14

Acknowledgements

This article is supported by the Key Program of the National Natural Science Foundation of China (71333004), the National Social Science Foundation of China (16AJY015, 15BJY169), and the Science Foundation of the Ministry of Education of China (14YJA790039, 14YJA790042). Paudel’s time in this project is supported by USDA Hatch Project titled “Economics of groundwater salinity in Louisiana”, Accession Number: 1015316.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [71333004]; USDA Hatch/Multi State Project [grant number LAB94358]; National Social Science Foundation of China [16AJY015]; and Science Foundation of the Ministry of Education of China [14YJA790039].