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

Gao, Liangliang; Sun, Dingqiang

doi:10.1111/cwe.12269

Cited by 30 publications

(18 citation statements)

References 9 publications

(9 reference statements)

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“…Under the heavy burden of taxes and fees, the comparative revenue of agriculture is low, and the long-term lack of investment in agriculture hinders the normal transfer of farmland and is not conducive to the expansion of operation scale. In addition, the impact of transaction cost, as a nonproductive cost, on agricultural land transfer deserves attention (Gao et al, 2019). In the process of land transfer, the supply and demand sides need to conduct multiple rounds of negotiation on the burden of agricultural taxes and fees, which increases the transaction cost of land transfer and thus discourages the expansion of the land operation scale.…”

Section: The Subject Of Taxation: Farmersmentioning

confidence: 99%

Tax pressure, farmland management, and agricultural carbon abatement: Empirical evidence from tax-and-fees reform in rural China

Zhang

Wang

Liu

et al. 2022

Front. Environ. Sci.

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Agriculture is the second largest source of carbon emissions in the world. To achieve the strategic goals of “carbon peaking” and “carbon neutrality”, how to effectively control agricultural carbon emissions has become a focus of the Chinese government. As China’s most critical agricultural policy in the early 21st century, assessing the impact of rural tax-and-fees reform (RTFR) on agricultural carbon emissions has vital theoretical and practical implications. Based on panel data of 31 Chinese provinces from 2000 to 2019, this paper constructs a continuous difference-in-differences (CDID) model to identify the effects of RTFR on agricultural carbon emissions, and further tests the mechanisms and heterogeneity of the reform to achieve agricultural carbon emission reduction. The results demonstrate that the reform can effectively reduce the agricultural carbon intensity and improve agricultural carbon efficiency, with the effects of −6.35% and 6.14%, respectively. Moreover, the dynamic effect test shows that the impact of RTFR on agricultural carbon intensity and carbon efficiency is persistent. Furthermore, the mechanism analysis indicates that RTFR achieves the improvement of agricultural operation efficiency and the reduction of agricultural carbon emissions through the expansion of land operation area, the increase of productive investment in agriculture, and the special transfer payment from the central government. However, the impact of RTFR on local government revenue is not conducive to realizing the reform’s carbon reduction effect. The heterogeneity analysis illustrates that the reform policy effects differ in natural climatic conditions, topographical conditions, and crop cultivation structure. The RTFR mostly has a significant negative impact on the carbon emissions generated from material inputs and agricultural production. Therefore, to address the climate change crisis and improve the environmental efficiency of agricultural production, it is necessary to both reduce peasants’ tax burden and implement institutional construction efforts, to further promote the transformation of agricultural production to a low-carbon model.

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Section: The Subject Of Taxation: Farmersmentioning

confidence: 99%

Tax pressure, farmland management, and agricultural carbon abatement: Empirical evidence from tax-and-fees reform in rural China

Zhang

Wang

Liu

et al. 2022

Front. Environ. Sci.

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“…Hahn and Stavins (2011) apply the Coasean theory to analyse the efficient allocation of emission trading through the cap-and-trade system. Recent literature also focuses on applying transaction cost theory to the transfer of agriculture farmland (Gao et al, 2019), designing corporate law (Almlöf and Bjuggren, 2019), and low carbon technologies (Mundaca et al, 2013).…”

Section: Transaction Cost and Initial Allocationmentioning

confidence: 99%

Economic Considerations of Legal Delimitation: Evidence from Judicial Verdicts in Bangladesh Courts

Miah

Usman

Suzuki

2021

IJIE

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The literature on law and economics argues that economic considerations have an important implication for consistent and efficient legal practices. In line with this tradition, this paper aims to analyse legal verdicts through the lens of transaction cost to ascertain if judicial decision takes social cost into account. In so doing, the research draws upon the literature of transaction cost theory, which examines the implications of transaction cost for legal verdicts. Data for the analysis consist of legal verdicts collected from Bangladesh. The paper shows that judicial decisions are influenced by economic matters, especially social and transaction costs. When the issue of these costs is clear, judges take this into consideration in deciding who should own what rights. This research contributes to the literature of law and economics by providing new information, which is believed to help regulators, policymakers, and legal practitioners in deciding value-creating property rights.

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“…This shows that the acquaintance society cannot convincingly explain the phenomenon of rent-free land transfers [16]. Second, human rent can explain the phenomenon of rent-free transfers; that is, the hidden human rent replaces the monetary rent [14]. A survey on different agricultural regions and mountainous counties conducted by the Chinese Academy of Sciences found that 70% of land without rent was transferred between relatives or acquaintances and that there was human contact in daily life or during festivals.…”

Section: Introductionmentioning

confidence: 99%

“…In fact, the phenomenon of rent-free land transfers has been explained from two aspects. First, the acquaintance-based rural society can explain the phenomenon, as some scholars have noted that about 70% of land transfers without rent occur between relatives or acquaintances [14]. To pursue the security of land contract rights, farmers usually transfer land out to relatives or acquaintances with little or no rent.…”

Section: Introductionmentioning

confidence: 99%

An Estimation of the Extent of Rent-Free Farmland Transfer and Its Driving Forces in Rural China: A Multilevel Logit Model Analysis

et al. 2019

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In recent years, the rent-free farmland transfer has become increasingly prominent in rural China. By employing multiple data sources, this study estimates the extent of rent-free land transfer from 1986 to 2015 and develops a multilevel logit model to identify its drivers. The results show that the extent of rent-free land transfer has been increasing, especially since 2002, and 30% to 50% of the land that has been transferred does not receive any rent, both in terms of the number of land parcels and the land area. There are obvious regional differences for the rent-free phenomenon in the process of land transfer, especially in mountainous areas, where the proportion is more than 70%. The cost-benefit analysis at the land parcel level shows that the average net income of rent-free land per mu that has been transferred (1 mu = 1/15 ha) is at a loss of 66 yuan, at 35 yuan. The rent-free land transfer is affected by factors at the levels of the land parcel, farmer and village. The land parcel size, quality level and irrigation condition are the key factors at the land parcel level; the ratio of the non-agricultural income in the family and land fragmentation are the key factors at the farmer level, and the inter-village gap is the key factor at the village level. The land parcel features account for approximately 40% of the variation in the rent-free land transfer. In sum, the increase in the labour cost is the direct reason for the rent-free land transfer, and land parcel features and the marginalization of mountainous areas are the preconditions for the rent-free land transfer. A rent-free land transfer is reasonable to some extent, but it is not an informal land transfer, and land rent does not play an effective role in allocating land resources. In this process, the idle or abandoned land resources in mountainous areas become relatively rich. The government should reasonably introduce urban capital and fully tap relatively rich land resources to realize the land capital appreciation and develop the local economy, and it should further regulate the land rental market and lay an emphasis on the integration of land resources, while moderating scale operations in mountainous areas.

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

Cited by 30 publications

References 9 publications

Tax pressure, farmland management, and agricultural carbon abatement: Empirical evidence from tax-and-fees reform in rural China

Tax pressure, farmland management, and agricultural carbon abatement: Empirical evidence from tax-and-fees reform in rural China

Economic Considerations of Legal Delimitation: Evidence from Judicial Verdicts in Bangladesh Courts

An Estimation of the Extent of Rent-Free Farmland Transfer and Its Driving Forces in Rural China: A Multilevel Logit Model Analysis

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