How do socioeconomic differentiation and rural governance affect households' land transfer decisions? Evidence from China

Abstract

In rural areas, social and economic differentiation profoundly impact rural development patterns, which, in return, impacts rural village social and economic structures and the land transfer decisions of rural households residing within the village. Research on agricultural land transfer has rarely been discussed under the lens of the differentiated socioeconomic structure of rural villages, as well as rural governance capacities. This paper contributes to the existing body of research on the determinants of rural land transfer by examining the role of village socioeconomic differentiation and rural governance based on a quantitative analysis of factors at different scales. The results show that: (1) compared with clan‐based unity structure, kinship‐based split structure and dispersed structure have a positive effect on household land out‐transfer and a negative effect on land in‐transfer. (2) The homogeneity of residents had a negative impact on out‐transfer, while the financial revenue of the village had significant positive influences on households' out‐transfer. (3) The higher the trust in cadres and the evaluation of the local government, the greater the tendency of households to transfer land in, but none of this effect is significant. (4) The socialized agricultural services and the share of non‐farm have significant effects on land transfer. Moreover, households with better geographical conditions, such as those near the county capital and towns, are more likely to transfer their land out. These findings offer significant insights for the management of agricultural scale and the revitalization of rural areas in China, while also offering valuable ideas for the implementation of differentiated agricultural control and rural governance policies in other countries.