IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v12y2023i7p1398-d1192436.html
   My bibliography  Save this article

Farmland Transfer and Income Distribution Effect of Heterogeneous Farmers with Livelihood Capital: Evidence from CFPS

Author

Listed:
  • Xueqi Wang

    (Law School, Ningbo University, Ningbo 315211, China
    College of Public Administration, Nanjing Agricultural University, Nanjing 210095, China)

  • Zhongguo Xu

    (Law School, Ningbo University, Ningbo 315211, China)

  • Guan Li

    (Law School, Ningbo University, Ningbo 315211, China)

  • Yuefei Zhuo

    (Law School, Ningbo University, Ningbo 315211, China)

  • Wei Zou

    (College of Public Administration, Nanjing Agricultural University, Nanjing 210095, China)

Abstract

Farmland transfer is a crucial aspect of modernizing China’s agriculture, which has a significant impact on farmers’ income distribution. With rapid urbanization, farmers’ livelihood has changed significantly, and the income effects of farmland transfer will differ among heterogeneous farmers. Based on the China Family Panel Studies (CFPS) data, this study examines the impact of farmland transfer on farmers’ income growth and income disparity, as well as the income differences in farmland transfer among farmers with different types of livelihood capital. An endogenous switching regression model and unconditional quantile treatment effects are used to correct the selection bias and farmer heterogeneity. The results show that (1) farmland transfer increases farmers’ income. Specifically, farmland transfer-in increases farmers’ income by 21.15%, while transfer-out increases it by 43.33%. (2) The impact of farmland transfer on farmers’ income has a “Matthew effect” and will widen the income gap between farmers. (3) Moreover, farmland transfer exhibits diverse income effects on heterogeneous farmers with livelihood capital. Capital-rich farmers experience the largest income-growth effect from farmland transfer-in, while capital-balanced farmers experience the largest income-growth effect from farmland transfer-out. The policy implications are to further improve the farmland transfer market and enable low-income farmers to participate by improving their qualifications and abilities.

Suggested Citation

  • Xueqi Wang & Zhongguo Xu & Guan Li & Yuefei Zhuo & Wei Zou, 2023. "Farmland Transfer and Income Distribution Effect of Heterogeneous Farmers with Livelihood Capital: Evidence from CFPS," Land, MDPI, vol. 12(7), pages 1-20, July.
    • Handle: RePEc:gam:jlands:v:12:y:2023:i:7:p:1398-:d:1192436
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/12/7/1398/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/12/7/1398/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yuan, Xuefeng & Du, Wenpeng & Wei, Xindong & Ying, Yue & Shao, Yajing & Hou, Rui, 2018. "Quantitative analysis of research on China’s land transfer system," Land Use Policy, Elsevier, vol. 74(C), pages 301-308.
    2. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    3. Begazo Curie, Karin & Mertens, Kewan & Vranken, Liesbet, 2021. "Tenure regimes and remoteness: When does forest income reduce poverty and inequality? A case study from the Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 128(C).
    4. Huanxin Yang & Kai Huang & Xin Deng & Dingde Xu, 2021. "Livelihood Capital and Land Transfer of Different Types of Farmers: Evidence from Panel Data in Sichuan Province, China," Land, MDPI, vol. 10(5), pages 1-21, May.
    5. Xie, Hualin & Lu, Hua, 2017. "Impact of land fragmentation and non-agricultural labor supply on circulation of agricultural land management rights," Land Use Policy, Elsevier, vol. 68(C), pages 355-364.
    6. Songqing Jin & T. S. Jayne, 2013. "Land Rental Markets in Kenya: Implications for Efficiency, Equity, Household Income, and Poverty," Land Economics, University of Wisconsin Press, vol. 89(2), pages 246-271.
    7. Xiaoheng Zhang & Xiaohua Yu & Xu Tian & Xianhui Geng & Yingheng Zhou, 2019. "Farm size, inefficiency, and rice production cost in China," Journal of Productivity Analysis, Springer, vol. 52(1), pages 57-68, December.
    8. Lili Chen & Hongsheng Chen & Chaohui Zou & Ye Liu, 2021. "The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China," Land, MDPI, vol. 10(4), pages 1-20, April.
    9. Yang, Lun & Liu, Moucheng & Lun, Fei & Min, Qingwen & Li, Wenhua, 2019. "The impacts of farmers’ livelihood capitals on planting decisions: A case study of Zhagana Agriculture-Forestry-Animal Husbandry Composite System," Land Use Policy, Elsevier, vol. 86(C), pages 208-217.
    10. Markus Frölich & Blaise Melly, 2013. "Unconditional Quantile Treatment Effects Under Endogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 346-357, July.
    11. Li, Chengyou & Jiao, Yong & Sun, Tao & Liu, Anran, 2021. "Alleviating multi-dimensional poverty through land transfer: Evidence from poverty-stricken villages in China," China Economic Review, Elsevier, vol. 69(C).
    12. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin & Li, Xiaoshun, 2020. "Land rental market and agricultural labor productivity in rural China: A mediation analysis," World Development, Elsevier, vol. 135(C).
    13. Liu, Moucheng & Yang, Lun & Bai, Yanying & Min, Qingwen, 2018. "The impacts of farmers’ livelihood endowments on their participation in eco-compensation policies: Globally important agricultural heritage systems case studies from China," Land Use Policy, Elsevier, vol. 77(C), pages 231-239.
    14. Heineck, Guido & Anger, Silke, 2010. "The returns to cognitive abilities and personality traits in Germany," Labour Economics, Elsevier, vol. 17(3), pages 535-546, June.
    15. Zhang, Lan & Feng, Shuyi & Heerink, Nico & Qu, Futian & Kuyvenhoven, Arie, 2018. "How do land rental markets affect household income? Evidence from rural Jiangsu, P.R. China," Land Use Policy, Elsevier, vol. 74(C), pages 151-165.
    16. Karin Begazo Curie & Kewan Mertens & Liesbet Vranken, 2021. "Tenure regimes and remoteness: When does forest income reduce poverty and inequality? A case study from the Peruvian Amazon," Post-Print hal-03754117, HAL.
    17. Lung-Fei Lee, 1982. "Some Approaches to the Correction of Selectivity Bias," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(3), pages 355-372.
    18. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
    19. Kaili Peng & Chen Yang & Yao Chen, 2020. "Land transfer in rural China: incentives, influencing factors and income effects," Applied Economics, Taylor & Francis Journals, vol. 52(50), pages 5477-5490, October.
    20. Xiang Deng & Min Zhang & Chunlin Wan, 2022. "The Impact of Rural Land Right on Farmers’ Income in Underdeveloped Areas: Evidence from Micro-Survey Data in Yunnan Province, China," Land, MDPI, vol. 11(10), pages 1-16, October.
    21. Ghebru, H. & Holden, S., 2018. "Land Access, Land Rental Markets and Rural Poverty Dynamics in Northern Ethiopian Highlands: Panel Data evidence using Survival Models," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277440, International Association of Agricultural Economists.
    22. Wang, Weiwen & Gong, Jian & Wang, Ying & Shen, Yang, 2021. "Exploring the effects of rural site conditions and household livelihood capitals on agricultural land transfers in China," Land Use Policy, Elsevier, vol. 108(C).
    23. Congjia Huo & Lingming Chen, 2021. "Research on the Impact of Land Circulation on the Income Gap of Rural Households: Evidence from CHIP," Land, MDPI, vol. 10(8), pages 1-20, July.
    24. Weiwen Wang & Jian Gong & Ying Wang & Yang Shen, 2022. "The Causal Pathway of Rural Human Settlement, Livelihood Capital, and Agricultural Land Transfer Decision-Making: Is It Regional Consistency?," Land, MDPI, vol. 11(7), pages 1-24, July.
    25. Lei Xu & Shixiang Chen & Shuliu Tian, 2022. "The Mechanism of Land Registration Program on Land Transfer in Rural China: Considering the Effects of Livelihood Security and Agricultural Management Incentives," Land, MDPI, vol. 11(8), pages 1-25, August.
    26. Zhang, Jian & Mishra, Ashok K. & Hirsch, Stefan, 2021. "Market-oriented agriculture and farm performance: Evidence from rural China," Food Policy, Elsevier, vol. 100(C).
    27. Jordan Chamberlin & Jacob Ricker-Gilbert, 2016. "Participation in Rural Land Rental Markets in Sub-Saharan Africa: Who Benefits and by How Much? Evidence from Malawi and Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1507-1528.
    28. Soini, Eija, 2005. "Land use change patterns and livelihood dynamics on the slopes of Mt. Kilimanjaro, Tanzania," Agricultural Systems, Elsevier, vol. 85(3), pages 306-323, September.
    29. Ellis, Frank & Bahiigwa, Godfrey, 2003. "Livelihoods and Rural Poverty Reduction in Uganda," World Development, Elsevier, vol. 31(6), pages 997-1013, June.
    Full references (including those not matched with items on IDEAS)

    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. Wenjing Han & Zhengfeng Zhang & Xiaoling Zhang & Li He, 2021. "Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China," Land, MDPI, vol. 10(9), pages 1-22, August.
    2. Xiaonan Zhao & Feng Lan, 2023. "The Impact of Livelihood Capital Endowment on Household Poverty Alleviation: The Mediating Effect of Land Transfer," Land, MDPI, vol. 12(7), pages 1-17, July.
    3. Weiguo Fan & Wei Yao & Kehan Chen, 2023. "Integrating Energy Systems Language and Emergy Approach to Simulate and Analyze the Energy Flow Process of Land Transfer," Land, MDPI, vol. 12(5), pages 1-24, May.
    4. Lili Chen & Hongsheng Chen & Chaohui Zou & Ye Liu, 2021. "The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China," Land, MDPI, vol. 10(4), pages 1-20, April.
    5. Baomin Cui & Lingling Tang & Jianxu Liu & Songsak Sriboonchitta, 2023. "How Does Land Transfer Impact the Household Labor Productivity in China? Empirical Evidence from Survey Data in Shandong," Land, MDPI, vol. 12(4), pages 1-24, April.
    6. Xiaolin Guo & Guanming Shi & Linyi Zheng & Wenrong Qian, 2022. "How Does the Land Rental Market Participation Affect Household Efficiency? Evidence from Rural China," IJERPH, MDPI, vol. 19(23), pages 1-14, December.
    7. Li, Rui & Li, Qinghai & Lv, Xiaofeng & Zhu, Xi, 2019. "The land rental of Chinese rural households and its welfare effects," China Economic Review, Elsevier, vol. 54(C), pages 204-217.
    8. Jian Zhang & Ashok K. Mishra & Peixin Zhu, 2021. "Land rental markets and labor productivity: Evidence from rural China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(1), pages 93-115, March.
    9. Lian Ke & Shan Cheng & Diqiang Chen & Ying Li, 2023. "Why Is the Income Effect of Farmland Transfer Inconsistent between Transferred-Out and Transferred-In Households?," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    10. Weiwen Wang & Jian Gong & Ying Wang & Yang Shen, 2022. "The Causal Pathway of Rural Human Settlement, Livelihood Capital, and Agricultural Land Transfer Decision-Making: Is It Regional Consistency?," Land, MDPI, vol. 11(7), pages 1-24, July.
    11. Wenjun Guo & Wei Zhao & Min Min, 2022. "Operation Scale, Transfer Experience, and Farmers’ Willingness toward Farmland Transfer-In: A Case Study of Rice–Crayfish Cultivating Regions in China," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    12. Zhihua Leng & Yana Wang & Xinshuo Hou, 2021. "Structural and Efficiency Effects of Land Transfers on Food Planting: A Comparative Perspective on North and South of China," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    13. Yijie Wang & Guoyong Liu & Bangbang Zhang & Zhiyou Liu & Xiaohu Liu, 2022. "Coordinated Development of Farmland Transfer and Labor Migration in China: Spatio-Temporal Evolution and Driving Factors," Land, MDPI, vol. 11(12), pages 1-19, December.
    14. Xia, Fangzhou & Huang, Jing & Zhang, Zhengfeng, 2024. "Government concerns, the benefit cliff, and land use: A comparative study of rural impoverished and marginalised impoverished groups," Land Use Policy, Elsevier, vol. 140(C).
    15. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin, 2023. "Land Markets and Labor Productivity: Empirical Evidence from China," IZA Discussion Papers 16575, Institute of Labor Economics (IZA).
    16. Jinning Li & Shunfeng Song & Guanglin Sun, 2022. "Non-Farm Employment, Farmland Renting and Farming Ability: Evidence from China," IJERPH, MDPI, vol. 19(9), pages 1-16, April.
    17. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    18. Jianyun Hou & Xuexi Huo & Runsheng Yin, 2017. "Land Rental Market Participation and Its Impact on Fixed Investment and Household Welfare: Evidence from Chinese Apple Production Sites," Sustainability, MDPI, vol. 9(11), pages 1-15, October.
    19. Keyan Li & Can Liu & Junlong Ma & Martinson Ankrah Twumasi, 2023. "Can Land Circulation Improve the Health of Middle-Aged and Older Farmers in China?," Land, MDPI, vol. 12(6), pages 1-16, June.
    20. Muraoka, Rie & Jin, Songqing & Jayne, T.S., 2018. "Land access, land rental and food security: Evidence from Kenya," Land Use Policy, Elsevier, vol. 70(C), pages 611-622.

    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:7:p:1398-:d:1192436. 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.