Does the policy of rural land rights confirmation promote the transfer of farmland in China?

Xu, Hengzhou and Zhao, Yihang and Tan, Ronghui and Yin, Hongchun (2017) Does the policy of rural land rights confirmation promote the transfer of farmland in China? Acta Oeconomica, 67 (4). pp. 643-672. ISSN 0001-6373

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Abstract

Land tenure security and land transfer markets are once again a topmost priority in the policy development agenda because of their expected outcomes in terms of equity and efficiency in the rural sector of China. The policy of rural land rights confirmation has been implemented since 2010 to enhance land tenure security and the transferability of farmland. However, only a few studies have been conducted on the effect of rural land rights confirmation on farmland transfer. Therefore, we use household-level survey data from 48 villages across Tianjin City and Shandong Province to explore whether rural land rights confirmation promotes the transfer of farmlands. Our empirical results show that rural land rights confirmation has significant and positive effects on the likelihood and amount of transfer-out land at the 5% significance level, but the effect on transfer-in farmland is insignificant. The results of the study have several policy implications. For instance, the agricultural comparative advantage should be improved through various agricultural subsidy policies. Moreover, the intermediary service network for farmland transfer should be established, and strengthening the non-farm employment skills and improving the non-agricultural employment market are necessary for the rural labour force.

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