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1 – 10 of over 16000Tongwei Qiu, Qinying He, S.T. Boris Choy, Yifei Li and Biliang Luo
This study investigates the effect of renting in land on farm productivity, and the impacts of rented-in land size and transaction partner type on farm productivity.
Abstract
Purpose
This study investigates the effect of renting in land on farm productivity, and the impacts of rented-in land size and transaction partner type on farm productivity.
Design/methodology/approach
Data from the 2015 China Household Finance Survey are analyzed using an extended regression model and the two-stage least squares method.
Findings
Farm households that rent in land are likely to achieve higher farm productivity, and ignoring endogeneity underestimates the positive effect of land renting-in. Further evidence indicates that rented-in land size has an insignificant impact on farm productivity, and that there is no difference in farm productivity between lessees renting-in land from acquaintances and those renting-in land from non-acquaintances. These results may be caused by the higher degree of marketization of land rentals between acquaintances in China. With increasing competition in agricultural factor markets, in theory, rented-in land size should not affect farm productivity.
Practical implications
Overall, the analysis suggests that renting in land improves farm productivity, which supports the land transfer policies that have been rolled out in recent decades in China. However, our finding that rented land size does not affect farm productivity, consistent with the results in the literature, implies that the Chinese government should no longer subsidize or prefer large farms with low productivity. More attention should be paid to small lessees and market-oriented land rentals between acquaintances. Promoting the marketization of land transfers inside acquaintance networks could realize the potential of the land market, especially if land transfers decrease.
Originality/value
This study identifies the effects of renting in land, rented-in land size and type of rental transaction partner on farm productivity using nationally representative data. The findings imply that the government should pay more attention to the marketization of land rentals between acquaintances. Although existing studies regard land rental between acquaintances as informal and of low efficiency, the recent evidence shows that China's land markets are changing, and policy makers should adjust their policies accordingly.
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Jianying Wang, Kevin Z. Chen, Sunipa Das Gupta and Zuhui Huang
The farm size-productivity relationship has long been the subject of debate among development economists. Few studies address this issue for China, and those that do only with…
Abstract
Purpose
The farm size-productivity relationship has long been the subject of debate among development economists. Few studies address this issue for China, and those that do only with outdated data sets poorly representing the current situation after the past decade of rapid change, which includes the rapid development of land rental markets, village labor out-migration and use of farm machines. Meanwhile, many studies have researched this relationship for Indian, which is undergoing similar changes except for the development of active land rental markets. The purpose of this paper is to measure the farm size-productivity relationship under the situations of rapid transformation in China and India.
Design/methodology/approach
Based on the data of 325 Jiangxi and 400 Allahabad rice farmers in 2011, the survey covered multiple plots of each household in one/multiple growing season(s). The authors use the production function approach and the yield approach, and control for farmland quality, imperfect factor markets, and farm size measurement error, to identify the farm size-productivity relationship.
Findings
The regressions show that land yields increase with plot size both by season and over the year in China. This may be one of the reasons that farm sizes are growing in some areas. In India, however, the inverse farm size-productivity relationship is observed by the study, despite recent changes. Moreover, land yields increase with farm machine use in both China and India. This result contributes to the debate over whether mechanization improves yields or just expands the land frontier.
Originality/value
The paper empirically estimates the farm size-productivity relationship under rapid agrarian transformation in both China and India based on a unique data set collected by the authors in a detailed primary survey. The paper considers measurement error in the analysis, which adds values to this type of analysis.
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Gucheng Li, Zhongchao Feng, Liangzhi You and Lixia Fan
Whether there exists an inverse relationship (IR) between farm size and its efficiency remains a hotly debated question among agricultural economists. In most studies to date…
Abstract
Purpose
Whether there exists an inverse relationship (IR) between farm size and its efficiency remains a hotly debated question among agricultural economists. In most studies to date, farm efficiency is measured by land productivity. Thus, the IR actually measures the relationship between farm size and land productivity. The purpose of this paper is to examine and understand the IR from a novel angle by using multiple definitions of farm efficiency indicators like labor productivity, profit ratio, total factor productivity (TFP) and technical efficiency (TE).
Design/methodology/approach
By using the farm-level panel data from Hubei province in China from 1999 to 2003, this paper employs the two-way fixed effect model of panel data and the stochastic frontier analysis of Battese and Coelli model to investigate the relationship between farm size and its production efficiency derived from the multiple definitions of production efficiency indicators including land productivity, labor productivity, profit ratio, TFP and TE.
Findings
The study confirmed the IR between land productivity and farm size, as in many formal studies. However, the relationship between farm size and other agricultural efficiency indicators may be positive, negative or uncorrelated at, depending on how the farm efficiency is defined. Therefore, the paper concluded that the relationship between farm size and its production efficiency is mixed. This paper provides economic explanations for the IR through the comprehensive study using the expansion of agricultural efficiency indicators.
Practical implications
Because different agricultural efficiency indicators have different policy implications for China's future agricultural and land policy, the findings have tremendous policy implications, particularly in terms of the current debate on large or small farm development strategy, the also so-called “go big or small” agricultural strategy. In this sense, the Chinese household responsibility system has played a critical role in its agriculture and will continue to play a critical role in terms of social security and social equality. Any reform to this system should proceed with caution.
Originality/value
While most existing studies only try to explain the IR from the perspective of land productivity, this paper attempts to propose a novel angle to examine the IR by using multiple definitions of agricultural efficiency and hopes to find some new conclusions.
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This paper assesses the effect of land ownership on household food security through its productivity enhancement effect in rural Burkina Faso.
Abstract
Purpose
This paper assesses the effect of land ownership on household food security through its productivity enhancement effect in rural Burkina Faso.
Design/methodology/approach
As the link between land tenure security and productivity is indirect, the study relies on a complex mixed process regression model with robustness to assess the effect of land ownership on household productivity. Then, an instrumental variable (IV) approach is followed to investigate the association between household productivity and food security. The rural development program survey data collected from 1,892 households in 2017 are used.
Findings
The complex mixed process estimation results are robust and show that land ownership has a positive effect on household productivity. From the IV results, it is found that productive households spend more on food, have a low share of expenditures on food and are less likely to experience severe food shortages, implying an improvement in their food security status. This highlights a positive association between land ownership and food security.
Originality/value
Unlike previous studies that only focused on the effect of land ownership on land-related investments and agricultural productivity, this study deepens the analysis and sheds light on how land ownership, agricultural production and food security are related. It gives empirical evidence on the importance of land policies in the struggle against food insecurity in agrarian economies.
Peer review
The peer review history for this article is available at https://publons.com/publon/10.1108/IJSE-11-2021-0658.
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Erma Suryani, Lily Puspa Dewi, Lukman Junaedi and Rully Agus Hendrawan
This paper aims to address the corn productivity and production problem under the environmental dynamics to improve the productivity and production through the use of models and…
Abstract
Purpose
This paper aims to address the corn productivity and production problem under the environmental dynamics to improve the productivity and production through the use of models and scenarios.
Design/methodology/approach
System dynamics simulation model is implemented to develop harvested area, productivity and production models. To improve productivity and production, several scenarios have been developed by modifying the model’s structures and parameters.
Findings
Some factors affecting productivity include soil nutrition, planting patterns, corn quality, irrigation, technology, climate, disease and pest attacks. Corn production after land expansion and intensification depends on the harvested area, productivity and rendement.
Research limitations/implications
The data and information used in this study were obtained from East Java Agricultural Department.
Practical implications
Corn productivity after land intensification would achieve 73.68 quintals/ha as the impact of structural and non-structural approaches implementation. Corn production after land intensification and expansion would achieve 10.2 M tons in 2030. Fulfillment ratio is above 100 per cent; however, the trend continues declining due to demand growth of 5 per cent and production growth of only 2.8 per cent.
Originality/value
The model development provides useful directions for modelers and holistic perspective to accommodate all problem elements. The case selected in this study (East Java) can be extended to other areas. Furthermore, the practical implications can facilitate decision makers in agricultural systems to improve the land productivity and corn production.
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This paper seeks to use data from China between 1929 and 1933 and provides new empirical evidence to the debate over the impact of land ownership and land‐renting systems on…
Abstract
Purpose
This paper seeks to use data from China between 1929 and 1933 and provides new empirical evidence to the debate over the impact of land ownership and land‐renting systems on agricultural productivity.
Design/methodology/approach
The authors estimate the OLS regression to determine the relationship between land ownership (and land‐renting systems) and farmers' productivity.
Findings
The findings suggest that land ownership was not a major factor in determining farmers' productivity; instead, agricultural infrastructures and institutions had the greatest influence on agricultural productivity. Furthermore, different renting systems generated different impacts on farmers' behavior: sharecropping reduced farmers' productivity while fixed rental contracts had no significant impact on farmers' productivity.
Practical implications
This paper has two important policy implications for developing countries. First, agricultural policy that aims to raise agricultural productivity should focus more on improving agricultural infrastructures and institutions than on blindly supporting land privatization. Second, policymakers should promote fixed rental contracts over share contracts because fixed rental contracts were shown to have a smaller adverse impact on farmers' incentives.
Originality/value
This paper uses data from China and provides new evidence on the relative importance of land ownership and agricultural infrastructures/institutions in agricultural production. China is a country with a long agricultural history and a long‐standing well‐developed tenancy system. The case of China may therefore provide answers to policymakers in other developing countries.
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Wanjun Yao and Shigeyuki Hamori
The purpose of this paper is to examine the long-term relationship between farm size and productivity in China at the national level.
Abstract
Purpose
The purpose of this paper is to examine the long-term relationship between farm size and productivity in China at the national level.
Design/methodology/approach
In contrast to the micro-data examination conducted by earlier literature, in this study, the authors use household aggregate panel data on 29 provinces in China for 1988–2012. Using the panel data PMG model, the authors control the factor of difference in land quality due to the fixed effect in each province, and the authors consider the difference in the long-run coefficients of farm size and land productivity rather than the difference in their short-run relationship. Thus, the authors examine the long-term relationship between farm size and productivity. Furthermore, the authors examine the robustness of this relationship in the long-term using samples of rice, wheat and corn production by region.
Findings
In contrast with the findings presented previously, the authors find that the relationship between farm size and agricultural productivity is statistically positive in the long term.
Originality/value
The relationship between farm size and agricultural productivity is a key research issue in agricultural and development economics. In China, many studies have provided evidence of the inverse relationship between farm size and agricultural productivity at the family farm level. However, this inverse relationship seems to reflect specific regions and specific periods in the relationship between farm size and land productivity. At the nationwide level, in the long-term, this is not an inverse but a positive relationship. It is desirable to expand farm size for the long-term development of agriculture.
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The purpose of this paper is to gain a better understanding of the role of culture in general, and social distance in particular, in influencing the choice and efficiency of…
Abstract
Purpose
The purpose of this paper is to gain a better understanding of the role of culture in general, and social distance in particular, in influencing the choice and efficiency of various contractual modes in developing country agriculture. It aims to focus on sharecropping, but the model of social distance can be applied to any contract, mainly those in close‐knit village societies.
Design/methodology/approach
Principal components analysis (PCA) is used in the study to develop a social distance index for all sharecroppers, which is included as an independent variable in land productivity ordinary least squares (OLS) regressions.
Findings
Findings indicate social distance is a key determinant in sharecropping efficiency for marginal tenant farmers in rural Nepal. Specifically, social distance is found to be a significant factor in explaining land productivity differentials between owned land and sharecropped land.
Research limitations/implications
Future research hopes to see whether social distance is also a significant factor in the efficiency and choice of bonded labor contracts. It intends to use simple OLS regressions for sharecroppers and bonded laborers separately in which: input use and land productivity are separate dependent variables, and the various factors or proxies of social distance are independent variables to test for their particular impact; each type of contract is the dependent variable to see the extent to which social distance affects the choice of tenancy; and social distance is the dependent variable so one can see the specific impact of different proxies. Given the small sample (although representative), the strong results in this paper are limited.
Practical implications
From a policy standpoint, the results suggest that a relatively egalitarian agrarian structure, insofar as it results in lower social distances among parties to land and labor contracts, would have a positive impact on productivity. Therefore, the object of agrarian reforms should not be to alter or constrain the form of contracts (for example by banning sharecropping) but rather to improve the social relations among contracting parties.
Originality/value
This paper is original and provides value in three ways: a conceptually and theoretically innovative model that explains sharecropping efficiency independent of standard explanations of market imperfections, transaction costs, and risk; in developing a new measure of social distance that allows the data to determine the weights of the independent variables in constructing social distance; and to see the need to more importantly study the changing social relations on which contracts are based and are often only one element of.
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Marianne Johnson and Warren J. Samuels
“Economics is a Serious Subject.” Edwin Cannan.
Qian Wang, Fan Li, Jin Yu, Luuk Fleskens and Coen J. Ritsema
This study examines the heterogeneous correlations between rural farmers' land renting behavior and their grain production when they experienced a significant price decline.
Abstract
Purpose
This study examines the heterogeneous correlations between rural farmers' land renting behavior and their grain production when they experienced a significant price decline.
Design/methodology/approach
We used well-timed panel data obtained from a two-round survey held in 2013 and 2017 among 621 households in the North China Plain. The empirical analyses were conducted by using the pooled ordinary least squares (OLS) and fixed effects models.
Findings
Rural tenants were having heterogeneous responses in land renting behavior and agricultural production when there was a price decline. A group of optimistic tenants (as professional farmers) were more likely to enlarge the farm scale for grain production through land rental markets but decrease variable investment levels (and subsequently decreased productivity) to cope with price decline. In contrast, nonprofessional farmers (the other rural tenants) were rather pessimistic about market performance, and they significantly decreased their grain production area to cope the price decline, but there was no decrease in grain productivity through reducing variable inputs.
Originality/value
This study contributes to the extant literature on the relationship between farmers' land renting-in behavior and agricultural production. By dividing the tenants into professional and nonprofessional farmers, we argue that there is a significant heterogeneous correlation between rural tenants' land renting behavior and grain production when farmers experience a price decline.
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