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Interlinkage between Farmland Rental and Credit Markets in China

Author

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  • Long, Cheryl
  • Xu, Lihe
  • Yuan, Yan

Abstract

Capital inputs are by and large ignored in the study of farmland rental in previous literature. With the micro-data of rural household finance survey in year 2009, this paper empirically tests whether credit market promotes the development of farmland rental market in rural China. Results show that loans from banks promote the development of farmland rental market. Furthermore, farmers are more likely to use trade credit to alleviate credit constraints in the process of agricultural production and as a result, trade credit promotes the agricultural land rentals.

Suggested Citation

  • Long, Cheryl & Xu, Lihe & Yuan, Yan, 2013. "Interlinkage between Farmland Rental and Credit Markets in China," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151290, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:151290
    DOI: 10.22004/ag.econ.151290
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    Keywords

    Agricultural and Food Policy; Land Economics/Use;

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