Credit availability, financing scale and rural land transfer: a case study of farmers engaged in specialized production
【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;
(Translated by ZHONG lingyuxiu)
. 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]
 Chen, F. & Zhai, W. Economic Research Journal (经济研究), (10) (2015).
 Cheng, L., Zhang, Y. & Liu, Z. Management World (管理世界), (1) (2016).
 Gao, L., Huang, J. & Ji, X. Chinese Rural Economy (中国农村经济), (12) (2014).
 Gao, X. & Jiang, R. Jianghan Luntan (江汉论坛), (7) (2015).
 Li, Q., Lyu, X. & Sun, G. Chinese Rural Economy (中国农村经济), (1) (2016).
 Luo, B. South China Journal of Economics (南方经济), (5) (2014).
 Ma, X., Qiu, T. & Qiang, Z. Chinese Rural Economy (中国农村经济), (2) (2015).
 Qian, Z. & Ji, X. Management World (管理世界), (2) (2016).
 Qian, Z. Chinese Rural Economy (中国农村经济), (10) (2008).
 Ruan, X. & Peng, C. Issues in Agricultural Economy (农业经济问题), (6) (2014).
 Tian, M. & He, X. Journal of Jiangxi University of Finance and Economics (江西财经大学学报), (2) (2015).
 Wang, Y., Ji, Y. & Xu, Z. Management World (管理世界), (11) (2015).
 Xie, W. Research on the Financial Supporting System of Rural Land Transfer (农村土地流转金融支持体系研究), Changsha: Central South University Press, (2010).
 Yao, W., Zeng, X. & Chu, K. Nankai Economic Studies (南开经济研究), (1) (2016).
 You, H., Wu, C. & Bao, H. Issues in Agricultural Economy (农业经济问题), (3) (2013).
 Zhang, H., Hu, X. & Hui, H. Journal of Agricultural Economics (农业技术经济), (3) (2016).
 Zhang, J., Liu, J. & Xu, Q. Management World (管理世界), (1) (2016).
 Zhang, L., Feng, S. & Lu, H. China Land Sciences (中国土地科学), (11) (2015).
 Zhong, F. & Ji, Y. Economic Research Journal (经济研究), (12) (2009).
 Carter, M. and Salgado, R.: Land Market Liberalization and the Agrarian Question in Latin America, in de Janvry A., Gordillo G., Sadoulet E., and Platteau. J. (eds.): Access to Land, Rural Poverty, and Public Action, Oxford University Press, 2001.
 Deininger, K. and Feder, G.: Land Institutions and Land Markets, in Arrow K. and Michael D. (eds.): Handbook of Agricultural Economics, Part 1(01), North Holland, 2001.
 Kaur, M. and Singh, S.: Agricultural Land Lease Market in Gurdaspur District of Punjab, Journal of Agricultural Development and Policy, 21(2): 51–60, 2011.
 Kevane, M.: Agrarian Structure and Agricultural Practice: Typology and Application to Western Sudan, American Journal of Agricultural Economics, 78(1): 236–245, 1996.
 Kochar, A.: Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural India, American Journal of Agricultural Economics, 79(3): 754–763,1997.