IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v12y2023i10p1855-d1250306.html
   My bibliography  Save this article

The Impact of Internet Use on Farmers’ Land Transfer under the Framework of Transaction Costs

Author

Listed:
  • Yangchenhao Wu

    (School of Economics and Management, Northwest University, Xi’an 710127, China)

  • Kaifeng Duan

    (School of Economics and Management, Fuzhou University, Fuzhou 350108, China)

  • Wang Zhang

    (School of Economics and Management, Northwest University, Xi’an 710127, China)

Abstract

The problems that exist in China’s agricultural operations are not only on a small scale; more seriously, there are also problems of land fragmentation and the mismatch of human and land resources. Land transfer is expected to be a tool for solving these problems. The land transfer market development is slow, leaving farmers facing serious information asymmetry. On the back of the information explosion brought about by information technology represented by the Internet, exploring the impact of Internet use on land transfer can provide ideas to improve the solution of land problems. Based on the cost theory analysis framework of new institutional economics, this paper empirically examines the impact of Internet use on farmers’ land transfer behavior. The results of the study show that Internet use can significantly increase the probability and scale of household land transfer by reducing the fixed and variable costs of transactions. This conclusion still holds after using instrumental variables to address endogeneity. The impact of Internet use on land transfer is heterogeneous, with the younger, more educated, and higher-income household heads tending to participate in the land transfer market on a larger land transfer scale. Therefore, rural Internet infrastructure should be further improved to alleviate information asymmetry in the land transfer market, further strengthen the training of Internet use skills of farmers, stimulate the enthusiasm of farmers to participate in the land transfer market, further increase farmers’ income, enhance the elasticity of farmers’ response to the use of the Internet to reduce transaction costs, and promote land transfer.

Suggested Citation

  • Yangchenhao Wu & Kaifeng Duan & Wang Zhang, 2023. "The Impact of Internet Use on Farmers’ Land Transfer under the Framework of Transaction Costs," Land, MDPI, vol. 12(10), pages 1-18, September.
  • Handle: RePEc:gam:jlands:v:12:y:2023:i:10:p:1855-:d:1250306
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/12/10/1855/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2073-445X/12/10/1855/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shimamoto, Daichi & Yamada, Hiroyuki & Gummert, Martin, 2015. "Mobile phones and market information: Evidence from rural Cambodia," Food Policy, Elsevier, vol. 57(C), pages 135-141.
    2. Sadoulet, Elisabeth & Fukui, Seiichi & Janvry, Alan de, 1994. "Efficient share tenancy contracts under risk: The case of two rice-growing villages in Thailand," Journal of Development Economics, Elsevier, vol. 45(2), pages 225-243, December.
    3. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
    4. Getachew A. Woldie & E.A. Nuppenau, 2011. "A contribution to transaction costs: evidence from banana markets in Ethiopia," Agribusiness, John Wiley & Sons, Ltd., vol. 27(4), pages 493-508, September.
    5. Heston, Alan & Kumar, Dharma, 1983. "The persistence of land fragmentation in peasant agriculture: An analysis of South Asian cases," Explorations in Economic History, Elsevier, vol. 20(2), pages 199-220, April.
    6. Thia Hennessy & Doris Läpple & Brian Moran, 2016. "The Digital Divide in Farming: A Problem of Access or Engagement?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(3), pages 474-491.
    7. Jenny C. Aker & Ishita Ghosh & Jenna Burrell, 2016. "The promise (and pitfalls) of ICT for agriculture initiatives," Agricultural Economics, International Association of Agricultural Economists, vol. 47(S1), pages 35-48, November.
    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. Ying Xue & Hongbin Liu & Zhenzhen Chai & Zimo Wang, 2024. "The Decision-Making and Moderator Effects of Transaction Costs, Service Satisfaction, and the Stability of Agricultural Productive Service Contracts: Evidence from Farmers in Northeast China," Sustainability, MDPI, vol. 16(11), pages 1-21, May.
    2. Xiang Deng & Jie Peng & Chunlin Wan, 2024. "The Impact of Internet Use on Land Productivity: Evidence from China Land Economy Survey," Land, MDPI, vol. 13(2), pages 1-21, February.
    3. Dongying Xie & Mengbo Xu, 2024. "The Role of Trust in Facilitating Land Transfers and Contract Formalization: A Study of Chinese Farm Households," Land, MDPI, vol. 13(12), pages 1-17, December.

    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. Zhang, Congying & Xiang, Jingru & Chang, Qian, 2023. "Does Informatization Cause the Relative Substitution Bias of Agricultural Machinery Inputs for Labor Inputs? Evidence from Apple Farmers in China," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(3), September.
    2. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    3. Jianxin Guo & Songqing Jin & Lei Chen & Jichun Zhao, 2018. "Impacts of Distance Education on Agricultural Performance and Household Income: Micro-Evidence from Peri-Urban Districts in Beijing," Sustainability, MDPI, vol. 10(11), pages 1-19, October.
    4. Min, Shi & Liu, Min & Huang, Jikun, 2020. "Does the application of ICTs facilitate rural economic transformation in China? Empirical evidence from the use of smartphones among farmers," Journal of Asian Economics, Elsevier, vol. 70(C).
    5. Qianqian Chen & Chao Zhang & Ruifa Hu & Shengyang Sun, 2022. "Can Information from the Internet Improve Grain Technical Efficiency? New Evidence from Rice Production in China," Agriculture, MDPI, vol. 12(12), pages 1-16, December.
    6. Zhang, Congying & Xiang, Jingru, 2021. "The impact of ICT application on farmers' subjective well-being: Based on the mediation effect of absolute income and relative income," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329379, Asian Society of Agricultural Economists (ASAE).
    7. Zhu, Xiaoke & Hu, Ruifa & Zhang, Chao & Shi, Guanming, 2021. "Does Internet use improve technical efficiency? Evidence from apple production in China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    8. Teimuraz Gogokhia & George Berulava, 2021. "Business environment reforms, innovation and firm productivity in transition economies," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 221-245, June.
    9. Tuccio, Michele & Wahba, Jackline & Hamdouch, Bachir, 2016. "International Migration: Driver of Political and Social Change?," IZA Discussion Papers 9794, Institute of Labor Economics (IZA).
    10. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    11. Yutaka ARIMOTO & Tetsuji OKAZAKI & Masaki NAKABAYASHI, 2010. "Agrarian Land Tenancy In Prewar Japan: Contract Choice And Implications On Productivity," The Developing Economies, Institute of Developing Economies, vol. 48(3), pages 293-318, September.
    12. Hajime Seya & Junyi Zhang & Makoto Chikaraishi & Ying Jiang, 2020. "Decisions on truck parking place and time on expressways: an analysis using digital tachograph data," Transportation, Springer, vol. 47(2), pages 555-583, April.
    13. Michael Grimm & Carole Treibich, 2013. "Why Do Some Bikers Wear a Helmet and Others Don't? Evidence from Delhi, India," AMSE Working Papers 1348, Aix-Marseille School of Economics, France, revised 10 Oct 2013.
    14. Donatella Furia & Alessandro Crociata & Massimiliano Agovino, 2018. "Voluntary work and cultural capital: an exploratory analysis for Italian regional data," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 789-808, December.
    15. Fabio Sabatini & Francesco Sarracino, 2015. "Keeping up with the e-Joneses: Do online social networks raise social comparisons?," Papers 1507.08863, arXiv.org.
    16. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66, September.
    17. Catherine Sofer & Claire Thibout, 2019. "Women’s investment in career and the household division of labour," Applied Economics, Taylor & Francis Journals, vol. 51(60), pages 6535-6557, December.
    18. Surya Nath Maiti, 2024. "Domestic Risk Factors, Violence and Marital Dissolution: Evidence from Demographic and Health Survey of India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(5), pages 1147-1170, October.
    19. Yoko Kijima, 2022. "Effect of Nigeria’s e-voucher input subsidy program on fertilizer use, rice production, and household income," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(4), pages 919-935, August.
    20. David Roodman & James G. MacKinnon & Morten Ørregaard Nielsen & Matthew D. Webb, 2019. "Fast and wild: Bootstrap inference in Stata using boottest," Stata Journal, StataCorp LP, vol. 19(1), pages 4-60, March.

    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:12:y:2023:i:10:p:1855-:d:1250306. 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.