Impact of land tenure policy on agricultural investments in China: Evidence from a panel data study

Gao, Liangliang; Sun, Dingqiang; Huang, Jikun

doi:10.1016/j.chieco.2017.07.005

Cited by 47 publications

(35 citation statements)

References 12 publications

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“…The link between land tenure and investment measures to improve and protect soil conservation and agricultural productivity is a vital area of study in the existing literature. As indicated by Gao, Sun [2] without market truancy, transaction expenses and asymmetry information, the allocation of land rights is irrelevant to the efficiency of the farm, although the prosperity can be affected. On the other hand, agricultural production is highly risky, the outcome depends on the adoption of technology and efforts by the farmer, tied with labour and imperfections in the credit market plus transaction costs associated with land transfers.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…Secure leasing arrangements embolden farmers to invest in soil and productivity improvement due to the assurance that they can hold the land for a longer time to gain investment returns. Gao, Sun [2] asserted that investment and its sources to finance investment can be affected by secure ownership. The drawback of leasing contracts stems from the owner's inability to fully engage in the renewal of the contract that hinders the tenant's investment in long-term soil improvement techniques as the tenant's uncertainty towards the land decreases the chances to reap benefits in future [3].…”

Section: Introductionmentioning

confidence: 99%

“…Lovo [10], in the context of Malawi, reported that soil conservation was positively affected by secure ownership rights. Gao, Sun [2] asserted that right of land use for long-term basis promoted investment for soil conservation in China. Banerjee and Ghatak [11] revealed that leasing laws contributed to a handsome share of crop, whereas greater secure rights had a positive impact on both productivity and investment.…”

Section: Introductionmentioning

confidence: 99%

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Impact of Land Use Rights on the Investment and Efficiency of Organic Farming

Akram

Wang

et al. 2019

Sustainability

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This study investigated the impact of three land tenure arrangements on organic farming (OF) in terms of increment of efficiency, yield, and investment in soil-improving activities by using farm-level data gathered from three districts located at Punjab, Pakistan. A multivariate tobit model that captured the probable substitute and investment choices, as well as the endogenous nature of land tenure arrangements, has been employed in this analysis. The empirical outcomes displayed that rights of land use affected the decisions made by farmers to invest in land and to improve efficiency. In detail, owner-farmers with secure rental arrangements invested more in improving their land and productivity compared to those with unsecured lease agreements. The yield per hectare was the highest for owner cultivation farm, while sharecropper output seemed the lowest, which are in agreement with the hypothesis of Marshallian inefficiency.

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Section: Conceptual Frameworkmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Impact of Land Use Rights on the Investment and Efficiency of Organic Farming

Akram

Wang

et al. 2019

Sustainability

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“…A series of protection policies and measures are being promulgated to enhance balanced development among land quantity, land quality, and ecological protection [8][9][10]. As the direct participants, farmers play an important role in the process of farmland protection, especially in the improvement of the soil fertility of farmland [11][12][13]. Farmers' land use decisions are closely related to land conservation; such as, decisions about soil fertility cultivation, land use efficiency, adoption of protective farming systems, and the utilization of agricultural waste resources [14][15][16].…”

Section: Introductionmentioning

confidence: 99%

Understanding Farmers’ Perceptions and Behaviors towards Farmland Quality Change in Northeast China: A Structural Equation Modeling Approach

Liu

Luo

2018

Sustainability

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Farmland protection is the most important land science research issue in developing countries, especially in China, due to serious land degradation. This paper aimed to reveal the causal chain among driving factors, farmers' land protection perceptions, behavioral responses, and land quality change by applying a structural equation model (SEM), based on a cross-sectional dataset of 238 households surveyed, and matched plot soil sample results in the Sujiatun District, in Liaoning province, China. The results show that, compared to internal factors, external factors play more important roles in shaping farmers' land protection awareness which subsequently transfer into land protection behaviors. Various land use behaviors lead to different impacts on land quality, in which the crop planting structure and land input density have dominant effects on changes in the soil nutrient content. The results imply that a stable and reasonable price mechanism for agricultural inputs and outputs is meaningful to land protection. Moderate land circulation would help reduce land fragmentation, develop agricultural modernization, improve production efficiency, and achieve economies of scale. In addition, knowledge, training and environmental policy information on farmland protection play key roles in land conservation activities. These main results have important implications for policymakers with regard to promoting land protection activities, alleviating land resource and environmental pressures, and thus achieving the goal of sustainable land use.Sustainability 2018, 10, 3345 2 of 17 will probably adopt some land conservation practices, in terms of using organic fertilizer and formula fertilizer, and these behaviors may further change their perspectives. Therefore, there are important theoretical and practical reasons for investigating the interrelations among farmers' land protection perceptions, behaviors and farmland quality changes from a microcosmic perspective.Some studies have focused on farmers' willingness to protect their farmland, and the influencing factors [19,20]. The characteristics of farm households and farmlands, as well as land protection policies, are closely related to farmers' perceptions of land protection [7,21,22]. Farmers' age and education positively affect land protection awareness, indicating that older farmers with higher levels of education are more likely to form stronger land protection intentions [23]. A dependence on agricultural income plays a promoting role in farmers' willingness towards land protection [24,25]. A sense of moral responsibility also has a positive effect on land protection cognition. Specifically, farmers are more willing to implement farmland conservation, due to a stronger sense of moral responsibility, implying that land protection policy should be focused on motivating farmers' sense of social responsibility [26]. However, land fragmentation seriously weakens farmers' enthusiasm to protect their farmland [27].According to the theory of planned behavior and relevant empir...

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“…This study is the first to apply TCE to farmland rental markets in rural China, enabling a comprehensive understanding of farmland transactions. ©2019 Institute of World Economics and Politics, Chinese Academy of Social Sciences Following previous studies, we consider the application of organic fertilizer as a measure for investment activity by farmers (Li et al, 1998;Jacoby et al, 2002;Gao et al, 2012;Gao et al, 2017). Using data from two waves of surveys in rural China, we empirically assess the impact of farmland transfers between relatives on organic fertilizer use.…”

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confidence: 99%

The Impact of Farmland Transfers on Agricultural Investment in China: A Perspective of Transaction Cost Economics

Gao

Sun

2019

China and World Economy

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There is growing concern that farmland transfers lead to less agricultural investment, which may adversely affect agricultural productivity growth in China. Prior research has primarily focused on the differences between owned cultivated land and rented plots, but little is known about how farmland transfers between relatives, which are popular in rural China, specifically affect agricultural investment. In this paper, we present a conceptual framework of transaction cost economics to compare different contracting strategies in China's farmland rental markets. As farmland rental markets in China are immature, land transfer between relatives establishes bilateral governance, which has the advantage of addressing the opportunistic activities of both parties and can ultimately increase investment by tenants. Based on data from two waves of household surveys, we empirically examine the impact of bilateral governance on the application of organic fertilizer, an indicator for agricultural investment. Our findings show that apart from economic factors, kinship is important to the functioning of farmland rental markets in rural areas.

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Impact of land tenure policy on agricultural investments in China: Evidence from a panel data study

Cited by 47 publications

References 12 publications

Impact of Land Use Rights on the Investment and Efficiency of Organic Farming

Impact of Land Use Rights on the Investment and Efficiency of Organic Farming

Understanding Farmers’ Perceptions and Behaviors towards Farmland Quality Change in Northeast China: A Structural Equation Modeling Approach

The Impact of Farmland Transfers on Agricultural Investment in China: A Perspective of Transaction Cost Economics

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