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The Second-Round Effects of the Agriculture Value Chain on Farmers’ Land Transfer-In: Evidence from the 2019 Land Economy Survey Data of Eleven Provinces in China

Author

Listed:
  • Qiang Jin

    (College of Economics and Management, China Agricultural University, No. 17 Tsinghua East Road, Haidian District, Beijing 100083, China)

  • Yanjing Guo

    (Shandong Academy of Social Sciences, No. 56 Shungeng Road, Shizhong District, Jinan 250002, China)

  • Hui Dang

    (College of Economics and Management, China Agricultural University, No. 17 Tsinghua East Road, Haidian District, Beijing 100083, China
    Faculty of Business Foreign Language, Shanxi University of Finance and Economics, No. 140 Wucheng Road, Taiyuan 030006, China)

  • Junfeng Zhu

    (College of Economics and Management, China Agricultural University, No. 17 Tsinghua East Road, Haidian District, Beijing 100083, China)

  • Kahaer Abula

    (Business School, Xinjiang Normal University, No. 100, Guanjing Road, Shuimogou District, Urumqi 830017, China)

Abstract

In the context of the separation of three rights of land and agricultural modernization, this paper is based on the land economic survey data from eleven provinces in China in 2019, covering the eastern, middle, and western regions of China. Based on the value chain theory and its “second-round effect”, which pertains to the multi-round effects of value chain distribution theory, various research methods such as Probit, Tobit, the two-part model, SFA, PSM, and the intermediary effect model are employed to analyze the direct impact of the agriculture value chain (AVC) on farmers’ land factor inputs and the income effects caused by them, which are the “second-round effect” of the AVC on land factor inputs. The research results show the following: Firstly, the AVC has a significant positive impact on the behavior and area of farmers’ land transferring-in, which helps guide farmers towards large-scale land operation. Secondly, the AVC significantly improves farmers’ production efficiency and promotes land transfer through differences in production efficiency, representing the “second-round effect” mechanism of the AVC on land factor inputs. Moreover, the AVC will increase farmers’ net land production income by 48.74%, which is the “second-round effect” of the AVC on farmers’ agricultural income and also the motivation for farmers’ land factor inputs. Finally, the expansion of land area and the improvement of production efficiency jointly increase farmers’ agricultural income, among which production efficiency plays a partial intermediary effect in increasing agricultural income if farmers join the AVC. This paper believes that we should further promote the market-oriented reform of land factors, support the innovation of the benefit linkage mechanism of the AVC, and promote appropriate areas of land operation by farmers, thereby achieving common prosperity and promoting agricultural modernization in China.

Suggested Citation

  • Qiang Jin & Yanjing Guo & Hui Dang & Junfeng Zhu & Kahaer Abula, 2024. "The Second-Round Effects of the Agriculture Value Chain on Farmers’ Land Transfer-In: Evidence from the 2019 Land Economy Survey Data of Eleven Provinces in China," Land, MDPI, vol. 13(4), pages 1-22, April.
    • Handle: RePEc:gam:jlands:v:13:y:2024:i:4:p:490-:d:1372771
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    References listed on IDEAS

    as
    1. Heath Henderson & Alan G. Isaac, 2017. "Modern Value Chains and the Organization of Agrarian Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(2), pages 379-400.
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    3. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    4. Michael R. Carter & Yang Yao, 2002. "Local versus Global Separability in Agricultural Household Models: The Factor Price Equalization Effect of Land Transfer Rights," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 702-715.
    5. Carter, Michael R, 1984. "Identification of the Inverse Relationship between Farm Size and Productivity: An Empirical Analysis of Peasant Agricultural Production," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 131-145, March.
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