IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i10p1844-d947230.html
   My bibliography  Save this article

Formal and Informal Institutions in Farmers’ Withdrawal from Rural Homesteads in China: Heterogeneity Analysis Based on the Village Location

Author

Listed:
  • Jing Wang

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China)

  • Kai Zhao

    (College of Economics and Management, Northwest A&F University, Xianyang 712100, China)

  • Yue Cui

    (College of Environmental Science and Engineering, Nankai University, Tianjin 300350, China)

  • Hui Cao

    (College of Economics and Management, Southwest University, Chongqing 400715, China)

Abstract

Withdrawal from rural homesteads (WRH) in China is mainly conducted under the guidance of government and follows the principle of farmers’ voluntary participation, in which both formal and informal institutions play essential roles. However, few studies have systematically analyzed the institutional factors in WRH. By introducing both formal and informal institutions into the analysis framework, the aim of this study was to explore the impacts of formal and informal institutions on farmers’ behavior to WRH, and the interaction between formal and informal institution in different villages. Based on survey data from farmers in Jinzhai, China, this study adopted a binary probit model and factor analysis. (1) The study revealed that farmers’ cognition of homesteads property rights and their trust in village cadres are the key formal institutional factors affecting farmers’ behavior to WRH, and farmers’ social networks, reciprocal norms, and trust in villagers are the key informal institutional factors affecting farmers’ WRH; (2) Both formal and informal institutions promote farmers’ WRH, and informal institutions play a more important role. However, there is no interaction between formal and informal institutions in the whole sample. (3) Furthermore, the effect of formal and informal institutions on farmers’ WRH have the heterogeneity of village location: there is a complementary relationship between formal and informal institutions in farmers’ WRH for villages with a medium proximity to the county seat, and a substitution relationship for villages far away from the county seat. Finally, this study discusses the implications of these findings on the new round of WRH policy.

Suggested Citation

  • Jing Wang & Kai Zhao & Yue Cui & Hui Cao, 2022. "Formal and Informal Institutions in Farmers’ Withdrawal from Rural Homesteads in China: Heterogeneity Analysis Based on the Village Location," Land, MDPI, vol. 11(10), pages 1-19, October.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:10:p:1844-:d:947230
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/10/1844/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/11/10/1844/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pérez-Fernández, Héctor & Cacciotti, Gabriella & Martín-Cruz, Natalia & Delgado-García, Juan Bautista, 2022. "Are interactions between need for achievement and social networks the driving force behind entrepreneurial Intention? A trait activation story," Journal of Business Research, Elsevier, vol. 149(C), pages 65-76.
    2. Yaoyang Zhao & Scott Cloutier & Hongqing Li, 2020. "Farmers’ Economic Status and Satisfaction with Homestead Withdrawal Policy: Expectation and Perceived Value," IJERPH, MDPI, vol. 17(19), pages 1-16, September.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    4. Adnan Efendic & Geoff Pugh & Nick Adnett, 2011. "Confidence in formal institutions and reliance on informal institutions in Bosnia and Herzegovina," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(3), pages 521-540, July.
    5. Xuesong Sun & Zaisheng Zhang & Yiye Zhang, 2018. "Factors Influencing Farmer’s Decision-Making Behavior on Rural Construction Land Transformation," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    6. Kenneth S. Chan & Xianxiang Xu & Yuanhua Gao, 2015. "The China Growth Miracle: The Role of the Formal and the Informal Institutions," The World Economy, Wiley Blackwell, vol. 38(1), pages 63-90, January.
    7. repec:fth:prinin:366 is not listed on IDEAS
    8. Cao, Qian & Sarker, Md Nazirul Islam & Sun, Jiangyan, 2019. "Model of the influencing factors of the withdrawal from rural homesteads in China: Application of grounded theory method," Land Use Policy, Elsevier, vol. 85(C), pages 285-289.
    9. Fuentelsaz, Lucio & Garrido, Elisabet & Maicas, Juan P., 2020. "The effect of informal and formal institutions on foreign market entry selection and performance," Journal of International Management, Elsevier, vol. 26(2).
    10. Lifang Zhang & Wen Fan, 2020. "Rural Homesteads Withdrawal and Urban Housing Market: A Pilot Study in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(1), pages 228-242, January.
    11. Chan, Christine M. & Du, Jialin, 2022. "Formal institution deficiencies and informal institution substitution: MNC foreign ownership choice in emerging economy," Journal of Business Research, Elsevier, vol. 142(C), pages 744-761.
    12. Peng Tang & Jing Chen & Jinlong Gao & Min Li & Jinshuo Wang, 2020. "What Role(s) Do Village Committees Play in the Withdrawal from Rural Homesteads? Evidence from Sichuan Province in Western China," Land, MDPI, vol. 9(12), pages 1-15, November.
    13. Kong, Xuesong & Liu, Yaolin & Jiang, Ping & Tian, Yasi & Zou, Yafeng, 2018. "A novel framework for rural homestead land transfer under collective ownership in China," Land Use Policy, Elsevier, vol. 78(C), pages 138-146.
    14. Casson, Mark C. & Della Giusta, Marina & Kambhampati, Uma S., 2010. "Formal and Informal Institutions and Development," World Development, Elsevier, vol. 38(2), pages 137-141, February.
    15. Osei-Tutu, Paul & Pregernig, Michael & Pokorny, Benno, 2015. "Interactions between formal and informal institutions in community, private and state forest contexts in Ghana," Forest Policy and Economics, Elsevier, vol. 54(C), pages 26-35.
    16. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    17. Yongchao Zhang & André Torre & Marianne Ehrlich, 2021. "Governance Structure of Rural Homestead Transfer in China: Government and/or Market?," Land, MDPI, vol. 10(7), pages 1-17, July.
    18. Rye, Tom & Monios, Jason & Hrelja, Robert & Isaksson, Karolina, 2018. "The relationship between formal and informal institutions for governance of public transport," Journal of Transport Geography, Elsevier, vol. 69(C), pages 196-206.
    19. David Card & Alan B. Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 31-50, Fall.
    20. Peng Shi & Frank Vanclay & Jin Yu, 2022. "Post-Resettlement Support Policies, Psychological Factors, and Farmers’ Homestead Exit Intention and Behavior," Land, MDPI, vol. 11(2), pages 1-22, February.
    21. Gao, Yang & Liu, Bei & Yu, Lili & Yang, Haoran & Yin, Shijiu, 2019. "Social capital, land tenure and the adoption of green control techniques by family farms: Evidence from Shandong and Henan Provinces of China," Land Use Policy, Elsevier, vol. 89(C).
    22. Golesorkhi, Sougand & Mersland, Roy & Randøy, Trond & Shenkar, Oded, 2019. "The Performance Impact of Informal and Formal Institutional Differences in Cross-Border Alliances," International Business Review, Elsevier, vol. 28(1), pages 104-118.
    23. Qiu, Tongwei & Zhang, Danru & Choy, S.T. Boris & Luo, Biliang, 2021. "The interaction between informal and formal institutions: A case study of private land property rights in rural China," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 578-591.
    24. Liu, Runqiu & Jiang, Jian & Yu, Chao & Rodenbiker, Jesse & Jiang, Yongmu, 2021. "The endowment effect accompanying villagers' withdrawal from rural homesteads: Field evidence from Chengdu, China," Land Use Policy, Elsevier, vol. 101(C).
    25. Chen, Hongxia & Zhao, Luming & Zhao, Zhenyu, 2017. "Influencing factors of farmers’ willingness to withdraw from rural homesteads: A survey in zhejiang, China," Land Use Policy, Elsevier, vol. 68(C), pages 524-530.
    26. Steer, Liesbet & Sen, Kunal, 2010. "Formal and Informal Institutions in a Transition Economy: The Case of Vietnam," World Development, Elsevier, vol. 38(11), pages 1603-1615, November.
    27. Jia Gao & Ge Song & Shuhan Liu, 2022. "Factors influencing farmers’ willingness and behavior choices to withdraw from rural homesteads in China," Growth and Change, Wiley Blackwell, vol. 53(1), pages 112-131, March.
    28. Korppoo, Anna, 2018. "Russian associated petroleum gas flaring limits: Interplay of formal and informal institutions," Energy Policy, Elsevier, vol. 116(C), pages 232-241.
    29. Úbeda, Fernando & Javier Forcadell, Francisco & Suárez, Nuria, 2022. "Do formal and informal institutions shape the influence of sustainable banking on financial development?," Finance Research Letters, Elsevier, vol. 46(PB).
    30. Ranran Shi & Ling Hou & Binghui Jia & Yaya Jin & Weiwei Zheng & Xiangdong Wang & Xianhui Hou, 2022. "Effect of Policy Cognition on the Intention of Villagers’ Withdrawal from Rural Homesteads," Land, MDPI, vol. 11(8), pages 1-17, August.
    31. David Card & Alan Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Working Papers 745, Princeton University, Department of Economics, Industrial Relations Section..
    32. Roxas, Banjo & Chadee, Doren, 2013. "Effects of formal institutions on the performance of the tourism sector in the Philippines: The mediating role of entrepreneurial orientation," Tourism Management, Elsevier, vol. 37(C), pages 1-12.
    33. Zhou, Jiehong & Liu, Qing & Liang, Qiao, 2018. "Cooperative membership, social capital, and chemical input use: Evidence from China," Land Use Policy, Elsevier, vol. 70(C), pages 394-401.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ting Zhang & Jia Li & Yan Wang, 2023. "Effects of Livelihood Capital on the Farmers’ Behavioral Intention of Rural Residential Land Development Right Transfer: Evidence from Wujin District, Changzhou City, China," Land, MDPI, vol. 12(6), pages 1-16, June.
    2. Lingling Li & Qianyu Dong & Changjian Li, 2023. "Research on Realization Mechanism of Land Value-Added Benefit Distribution Justice in Rural Homestead Disputes in China—Based on the Perspective of Judicial Governance," Land, MDPI, vol. 12(7), pages 1-28, June.
    3. Tao Xia & Elias G. Carayannis & Stavros Sindakis & Saloome Showkat & Nikos Kanellos, 2024. "Technology transfer for sustainable rural development: evidence from homestead withdrawal with compensation in Chengdu–Chongqing," The Journal of Technology Transfer, Springer, vol. 49(1), pages 303-333, February.
    4. Yao Luo & Yumei Li & Chen Li & Qun Wu, 2023. "Influence of the Kinship Networks on Farmers’ Willingness to Revitalize Idle Houses," Sustainability, MDPI, vol. 15(13), pages 1-14, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiuling Ding & Qian Lu & Lipeng Li & Apurbo Sarkar & Hua Li, 2023. "Does Labor Transfer Improve Farmers’ Willingness to Withdraw from Farming?—A Bivariate Probit Modeling Approach," Land, MDPI, vol. 12(8), pages 1-27, August.
    2. Xianjun Wang & Junfang Kang, 2023. "Decision Making and Influencing Factors in Withdrawal of Rural Residential Land-Use Rights in Suzhou, Anhui Province, China," Land, MDPI, vol. 12(2), pages 1-20, February.
    3. Wentao Si & Chen Jiang & Lin Meng, 2022. "Leaving the Homestead: Examining the Role of Relative Deprivation, Social Trust, and Urban Integration among Rural Farmers in China," IJERPH, MDPI, vol. 19(19), pages 1-28, October.
    4. Ying Chen & Xiaolu Ni & Yajia Liang, 2022. "The Influence of External Environment Factors on Farmers’ Willingness to Withdraw from Rural Homesteads: Evidence from Wuhan and Suizhou City in Central China," Land, MDPI, vol. 11(9), pages 1-13, September.
    5. Ranran Shi & Ling Hou & Binghui Jia & Yaya Jin & Weiwei Zheng & Xiangdong Wang & Xianhui Hou, 2022. "Effect of Policy Cognition on the Intention of Villagers’ Withdrawal from Rural Homesteads," Land, MDPI, vol. 11(8), pages 1-17, August.
    6. Tao Xia & Elias G. Carayannis & Stavros Sindakis & Saloome Showkat & Nikos Kanellos, 2024. "Technology transfer for sustainable rural development: evidence from homestead withdrawal with compensation in Chengdu–Chongqing," The Journal of Technology Transfer, Springer, vol. 49(1), pages 303-333, February.
    7. Yutong He & Peng Tang, 2023. "Understanding the Role(s) of Social Networks in the Transition from Farmers’ Willingness to Behavior Regarding Withdrawal from Rural Homesteads: A Research Study Based on Typical Regions of Sichuan Pr," Land, MDPI, vol. 12(8), pages 1-16, July.
    8. Qiu, Tongwei & Li, Yifei & Shi, Xinjie & Peng, Changyan & Luo, Biliang, 2024. "Alternative modes of governance: Clans and social instability in rural China," China Economic Review, Elsevier, vol. 84(C).
    9. Fachao Liang & Zehua Wang & Sheng-Hau Lin, 2022. "Can Land Policy Promote Farmers’ Subjective Well-Being? A Study on Withdrawal from Rural Homesteads in Jinjiang, China," IJERPH, MDPI, vol. 19(12), pages 1-17, June.
    10. Hanlong Gu & Yuqing He & Bingyi Wang & Fengkui Qian & Yan Wu, 2023. "The Influence of Aging Population in Rural Families on Farmers’ Willingness to Withdraw from Homesteads in Shenyang, Liaoning Province, China," Land, MDPI, vol. 12(9), pages 1-25, September.
    11. Kangchuan Su & Jiang Wu & Yan Yan & Zhongxun Zhang & Qingyuan Yang, 2022. "The Functional Value Evolution of Rural Homesteads in Different Types of Villages: Evidence from a Chinese Traditional Agricultural Village and Homestay Village," Land, MDPI, vol. 11(6), pages 1-22, June.
    12. Qiu, Tongwei & Zhang, Danru & Choy, S.T. Boris & Luo, Biliang, 2021. "The interaction between informal and formal institutions: A case study of private land property rights in rural China," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 578-591.
    13. Ting Zhang & Jia Li & Yan Wang, 2023. "Effects of Livelihood Capital on the Farmers’ Behavioral Intention of Rural Residential Land Development Right Transfer: Evidence from Wujin District, Changzhou City, China," Land, MDPI, vol. 12(6), pages 1-16, June.
    14. Peng Tang & Jing Chen & Jinlong Gao & Min Li & Jinshuo Wang, 2020. "What Role(s) Do Village Committees Play in the Withdrawal from Rural Homesteads? Evidence from Sichuan Province in Western China," Land, MDPI, vol. 9(12), pages 1-15, November.
    15. Jia Gao & Ge Song & Shuhan Liu, 2022. "Factors influencing farmers’ willingness and behavior choices to withdraw from rural homesteads in China," Growth and Change, Wiley Blackwell, vol. 53(1), pages 112-131, March.
    16. Yichi Zhang & Kai Xue & Huimin Cao & Yingen Hu, 2023. "The Non-Linear Relationship between the Number of Permanent Residents and the Willingness of Rural Residential Land Transfer: The Threshold Effect of per Capita Net Income," Land, MDPI, vol. 12(8), pages 1-23, August.
    17. Yang, Chen & Qian, Zhu, 2022. "The complexity of property rights embedded in the rural-to-urban resettlement of China: A case of Hangzhou," Land Use Policy, Elsevier, vol. 122(C).
    18. Zhang, Yongchao & Torre, André & Ehrlich, Marianne, 2023. "The impact of Chinese government promoted homestead transfer on labor migration and household's well-being: A study in three rural areas," Journal of Asian Economics, Elsevier, vol. 86(C).
    19. Bin Guo & Lei Yuan & Mengyuan Lu, 2023. "Analysis of Influencing Factors of Farmers’ Homestead Revitalization Intention from the Perspective of Social Capital," Land, MDPI, vol. 12(4), pages 1-18, April.
    20. Liu, Runqiu & Jiang, Jian & Yu, Chao & Rodenbiker, Jesse & Jiang, Yongmu, 2021. "The endowment effect accompanying villagers' withdrawal from rural homesteads: Field evidence from Chengdu, China," Land Use Policy, Elsevier, vol. 101(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:11:y:2022:i:10:p:1844-:d:947230. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.