‍Credit availability, financing scale and rural land transfer: a case study of farmers engaged in specialized production

HOU Jianyun1 HUO Xuexi1

(1.The Western Rural Development Research Center, Northwest A&F University.)

【Abstract】In order to understand better the problem of rural land transfer in China, this paper examines the impact of credit availability and financing scale on farmers’ rural land transfer from the perspective of liquidity constraint. The results show that the widespread financial exclusion in developing countries pushed up the shadow price of liquidity capital, leading to the potential incidence rate of rural land transfer far below the transferring level in the complete market, while obtaining credit support significantly promoted rural land transfer, especially the scale of rural land inflow. The net effect of credit availability on rural land transfer is shown as follows: as for the whole sample, the credit support has increased the probability of farmers’ participation in rural land transfer by 8.53% and the inflow area by 1.09 mu (1 hectare (ha.) = 15mu); as for farmers obtaining credit support, the credit support has increased the probability of their participation in rural land transfer by 9.11% and the inflow area by 1.15 mu. Therefore, under the consensus of orderly pressing ahead rural land transfer and promoting the scale and specialization of agricultural production at the present stage, increasing farmers’ credit availability and financing capability is the policy choice to alleviate the problem of ‘weak willingness in and small scale of rural land transfer.’

【Keywords】 credit availability; financing scale; rural land transfer; propensity score matching;

【DOI】

【Funds】 Major Project of Ministry of Agriculture (CARS-28).

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(Translated by ZHONG lingyuxiu)

    Footnote

    [1]. The original value of household assets refers to the original purchase value of assets such as housing, truck, car, color TV sets, refrigerators, washing machines, computers and air conditioners. [^Back]

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This Article

ISSN:1006-4583

CN: 11-3586/F

Vol , No. 06, Pages 29-39

November 2016

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Article Outline

Abstract

  • 1 Introduction and literature review
  • 2 Theoretical framework
  • 3 Model selection, variable settings and data sources
  • 4 Model estimation results
  • 5 Research conclusion and revelation
  • Footnote

    References