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1 – 10 of 747Tongwei 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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Eva Seewald, Samantha Baerthel and Trung Thanh Nguyen
This study aims to investigate whether the participation in land rental markets helps to mitigate impacts by climate change on multidimensional poverty in Thailand and Vietnam.
Abstract
Purpose
This study aims to investigate whether the participation in land rental markets helps to mitigate impacts by climate change on multidimensional poverty in Thailand and Vietnam.
Design/methodology/approach
The authors use precipitation data from the National Aeronautics and Space Administration (NASA) and self-reported shocks from the Thailand Vietnam Socio-Economic Panel (TVSEP) project to estimate climate change. Data from the TVSEP are also used to calculate a multidimensional poverty index (MPI). Fixed-effect logit panel regressions with interaction terms are implemented to analyze the above mentioned.
Findings
The results show that land rental markets are used as mitigation strategies to climate change in Thailand and Vietnam. The participation in land rental markets also reduces multidimensional poverty. However, as a mitigation strategy, land rental markets are only successful in certain circumstances.
Research limitations/implications
The results show that there is potential in using land rental markets as mitigation strategies to climate change. Further research is needed to better understand which adaptation strategies, besides land rental market participation, and which combinations of different adaptation strategies are successful to mitigate negative effects induced by climate change.
Practical implications
The results show that there is potential in using land rental markets as mitigation strategies to climate change. Therefore, education in the participation in land rental markets and how to use them as a mitigation strategy can be a way to increase households' resilience to negative effects induced by climate change. Households make better decisions regarding their land when they are better informed on the functionality of land rental markets. Additionally, being better informed increases self-confidence to participate in land-rental markets.
Originality/value
Land rental markets as a mitigation strategy to climate change rarely have been studied, and if so, mainly the effect of leasing land has been studied. Additionally, the authors implement new measures of poverty – a multidimensional view on poverty which provides new insights into who are the poor and how they can be lift out of poverty.
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Jianyun Hou, Xuexi Huo and Runsheng Yin
The purpose of this paper is to explore the impact of using computers to obtain information on the farm household’s production and consumption based on a field survey of farm…
Abstract
Purpose
The purpose of this paper is to explore the impact of using computers to obtain information on the farm household’s production and consumption based on a field survey of farm households in the northern China.
Design/methodology/approach
The most important methods applied are instrumental variable (IV) method and propensity score matching (PSM) method. Estimators of IV, PSM and nearest neighborhood matching approaches are considered together to check the robustness of empirical results.
Findings
This paper careful impact evaluation results suggest that the use of computer not only improves the size of arable land rented in but also reduces family labor input intensity and the probability of selling agricultural outputs at farm-gate markets. Moreover, it also stimulates transportation, garment, housing and insurance expenditures per capita.
Research limitations/implications
The database of this research comprises cross-section data, which does not support a cross-time comparison.
Practical implications
These results imply that it is vital to expand the coverage of computer use in rural areas. This may suggest that the importance of improving computer access is crucial for stimulating rural consumption increase. Furthermore, the need for the expansion of internet network coverage in western areas is also of importance.
Originality/value
First, the authors directly estimate computer usage impacts on a broader range of production and consumption indicators by including land-relative investments, variable investments, labor input and household’s expenditure and provide rigorous impact evaluations on the impact of access to computer. Second, the authors use IV and PSM methods to correct self-selection bias, going beyond the single equation approach in other studies. This enables us to identify the causal relationship between computer usage and farmer’s production and consumption decisions.
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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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Ying Liu, Chenggang Wang, Zeng Tang and Zhibiao Nan
The purpose of this paper is to examine the impacts of farmland renting-in on planted grain acreage.
Abstract
Purpose
The purpose of this paper is to examine the impacts of farmland renting-in on planted grain acreage.
Design/methodology/approach
A survey data of five counties were analyzed with the two-stage ordinary least squares model.
Findings
Households renting-in land trended to plant more maize, and the more land was rented by a household the more maize was planted, while wheat acreage showed non-response to farmland renting-in.
Practical implications
Overall, the analysis suggests that policy makers should be prepared for different changing trends of grain crop acreage across the nation as farmland transfer continues. Future research should pay attention to the effect of farmland transfer on agricultural productivity and rural household income growth.
Originality/value
As the Chinese Government is promoting larger-scale and more mechanized farms as a way of protecting grain security, it is important to understand whether farmland renting-in will reduce planted grain acreage. This study provides empirical evidence showing the answer to that question may differ across different regions and depend on the particular grain crop in question.
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Christian H. Kuhlgatz, Jiaqi Huang and Gerrit Antonides
The purpose of this paper is to evaluate the effects of price and income changes on food and nutrient demand of rural households by including own-produced food and production-side…
Abstract
Purpose
The purpose of this paper is to evaluate the effects of price and income changes on food and nutrient demand of rural households by including own-produced food and production-side effects in the demand estimation to correct potential measurement bias in the income and price elasticities for rural households in underdeveloped areas. Simulation results of income and grain price changes on food and nutrition security are provided for economic nutrition security policy applications.
Design/methodology/approach
This study analyzes survey data of 1,555 households from underdeveloped rural areas of China to find out how price and income changes affect food and nutrition insecurity of rural households. The authors employ the quadratic almost ideal demand system (QUAIDS) in a two-stage budgeting framework, using quality adjusted prices that were retrieved with regressions of the difference between the unit value surveyed at household level and its village average on household characteristics. The bias correction is implemented by using an augmented IV (instrumental variable) method, in which each market price is instrumented with farm-specific variables. Important macro- and micronutrient elasticities are computed for (a) households with agriculture as main income and (b) other households (of which still many have agriculture as a side business). Finally, the authors use these elasticities to simulate how changes in income or grain prices affect the food and nutrition security in the studied areas.
Findings
In general, food income elasticities of agricultural households are at a higher level than those for other households, and so are the food price elasticities. Income changes also have a greater nutritional effect on agricultural households than on other households. Nutrient income elasticities ranged from 0.22 (energy) to 0.27 (Vitamin A) for agricultural households and from 0.19 (energy) to 0.23 (Vitamin A) for other households. Grain price increases have greater effect on nutritional status of non-agricultural households, while a grain price reduction is not clearly favoring the nutritional situation of a particular household group.
Originality/value
This demand study contributes to the literature by taking into account differences in consumption of own production between households and the potential endogeneity of prices resulting thereof. The authors also demonstrate that merely reporting nutrient elasticities might not be sufficient for policy recommendations, and simulations should be reported as a valuable addition.
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– The purpose of this paper is to examine the impacts of off-farm labor employments on household land rental behavior in rural China.
Abstract
Purpose
The purpose of this paper is to examine the impacts of off-farm labor employments on household land rental behavior in rural China.
Design/methodology/approach
IV-Probit and IV-Tobit model are used to identify the estimate of interest.
Findings
The results indicate that households with more members participating in either migration or local off-farm work are more/less likely to rent out/in land. Moreover, the effect of migration on household land rental behavior is much larger than the effect of local off-farm work.
Practical implications
These results suggest that ensuring benefits of migrants in urban cities can automatically promote household land rental behavior in rural China.
Originality/value
The authors provide a rigorous and careful empirical analysis on the effect of off-farm employment on household land rental behavior and pay special attention to the endogeneity issue tackled using separable instruments.
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Jikun Huang, Liangliang Gao and Scott Rozelle
Developing nations need good cultivated land rental markets to foster rational resource use and to enhance productivity and equity. Can cultivated land rental markets emerge in…
Abstract
Purpose
Developing nations need good cultivated land rental markets to foster rational resource use and to enhance productivity and equity. Can cultivated land rental markets emerge in the face of rapidly developing off‐farm labor markets? The purpose of this paper is to measure the correlation between the emergence of off‐farm employment and cultivated land rental in China.
Design/methodology/approach
Based on a panel data from 2000 and 2008, the authors constructed econometric models to identify the impact of off‐farm employment on the decisions of households to rent out and rent in cultivated land.
Findings
This paper finds that the emergence of off‐farm employment has significant and positive impacts on stimulating household to rent out cultivated land. The effect is less prominent for renting‐in decisions.
Originality/value
The paper empirically estimates the impacts of off‐farm employment on cultivated land rent markets based on a unique panel data set from a national representative sample.
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The purpose of this paper is to evaluate the relative impacts of full-scale land reallocation (FLR) and partial-scale land reallocation (PLR) on household land rental behavior in…
Abstract
Purpose
The purpose of this paper is to evaluate the relative impacts of full-scale land reallocation (FLR) and partial-scale land reallocation (PLR) on household land rental behavior in rural China.
Design/methodology/approach
Probit model, Tobit model and Semi-parametric model are used to provide empirical evidences.
Findings
Drawing upon an unique farm survey in 2003, the authors find that in rural China, FLR is more likely to follow egalitarian rule and PLR takes productivity of households into consideration. Econometric analysis provides two main findings. First, FLR has positive effect on household land rental behavior, possibly because egalitarian FLR creates a mismatch between household agricultural ability and land size and after FLR households have to participate in land rental market to adjust the mismatch. Second, PLR has negative effect on household land rental behavior which supports that land reallocation and land rental market are substitutes (Brandt et al., 2004).
Originality/value
The main contribution of this study is to show that FLR and PLR in rural China are motivated by two different rationales (i.e. FLR by egalitarian concerns and PLR by efficiency concerns).
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Weiliang Su, Tor Eriksson and Linxiu Zhang
The purpose of this paper is to examine the impact of off-farm employment on the concentration of farmland via households’ land rental activities in rural China.
Abstract
Purpose
The purpose of this paper is to examine the impact of off-farm employment on the concentration of farmland via households’ land rental activities in rural China.
Design/methodology/approach
The paper uses Probit and Tobit models to estimate the effect of off-farm employment on land rental activities. Furthermore, the paper compares the degree of land concentration between pre-renting and post-renting in terms of Gini coefficients of farmland ownership at village level.
Findings
The authors find that off-farm employment has a positive effect on the renting out farmland, and insignificant effect on renting in farmland. Moreover, off-farm employment intensifies the concentration of farmland from small farms toward big farms by renting activities.
Originality/value
The authors believe that the results will contribute positively to the assessment of the effect of off-farm employment on land concentration in the context of the urbanization process in China.
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