Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24–26, 2024, Jinan, China

Research Article

How Land Transfer Contracts Affect Farmers' Investment Behaviour-based on Survey Data of 991 Rural Households in five Provinces in China

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  • @INPROCEEDINGS{10.4108/eai.24-5-2024.2350087,
        author={Junye  Wang and Zhuoran  Li},
        title={How Land Transfer Contracts Affect Farmers' Investment Behaviour-based on Survey Data of 991 Rural Households in five Provinces in China},
        proceedings={Proceedings of the 3rd International Conference on Mathematical Statistics and Economic Analysis, MSEA 2024, May 24--26, 2024, Jinan, China},
        publisher={EAI},
        proceedings_a={MSEA},
        year={2024},
        month={10},
        keywords={land transfer contract farmers' long-term investment propensity score matching method},
        doi={10.4108/eai.24-5-2024.2350087}
    }
    
  • Junye Wang
    Zhuoran Li
    Year: 2024
    How Land Transfer Contracts Affect Farmers' Investment Behaviour-based on Survey Data of 991 Rural Households in five Provinces in China
    MSEA
    EAI
    DOI: 10.4108/eai.24-5-2024.2350087
Junye Wang1,*, Zhuoran Li1
  • 1: Northwest A & F University, Yangling, China
*Contact email: xnjgwjy@nwafu.edu.cn

Abstract

As a product of rural economic development to a certain stage, land transfer plays a key role in the scale, intensification and modernization of agricultural business model, however, some of the transferring farmers in the long term due to the "free-rider" thinking and refused to invest in infrastructure, which is not conducive to the goal of sustainable development and the process of modernization of agriculture.Therefore, it is of great theoretical and practical significance to analyze the path and effect of land transfer contract on the investment behavior of farmers. Based on the survey data of 991 rural households in five provinces, namely Shaanxi, Hebei, Liaoning, Guangdong and Yunnan, this paper measures the effect of land transfer contract on farmers' long-term investment by using the propensity score matching (PSM) method from the three dimensions of profitability, stability and formality of the land transfer contract. It is found that paid, written, fixed-term land transfer contracts significantly increase the investment behaviour of farmers compared to unpaid, oral, non-fixed-term ones. Therefore, by optimizing the form and content of contracts, strengthening policy support and financial innovation and other measures, we can effectively stimulate farmers' enthusiasm for investment and promote the development of agriculture to a higher quality and higher efficiency.