Farmland transfer and agricultural economic growth nexus in China: agricultural TFP intermediary effect perspective

Abstract

Purpose

The multidimensional effects of farmland transfer in China have been profoundly unstudied. The purpose of this paper is to provide insights on the effects of the intermediary role of agricultural total factor productivity (TFP) of farmland transfer on agricultural economic growth in China.

Design/methodology/approach

Based on the agricultural data of 30 provinces in China over the period 2005–2018, this paper uses the intermediary effect model to test the relationship between farmland transfer, agricultural TFP and agricultural economic growth. This paper employed an intermediary effect test model to investigate the intermediary role of agricultural TFP in the influence of farmland transfer on agricultural economic growth.

Findings

The findings indicated that farmland transfer has a significant effect on promoting agricultural economic growth. There is a significant “inverted U-shaped” relationship between farmland transfer and agricultural TFP. The sample value of 84.3% of farmland transfers in China is still within the TFP promoting effect range. In addition, farmland transfer has an indirect impact on agricultural economic growth through the channel of agricultural TFP. Agricultural TFP plays a significant intermediary role, but the effect is relatively low

Originality/value

This paper is the first to provide fundamental evidence on the impact of farmland transfers on agricultural economic growth in China, driven by agricultural TFP as an intermediary factor. Agricultural TFP can reduce the involution effect of farmland transfer and promote an indirect effect on agricultural economic growth.

Citation

Kuang, Y.-p., Yang, J.-l. and Abate, M.-C. (2022), "Farmland transfer and agricultural economic growth nexus in China: agricultural TFP intermediary effect perspective", China Agricultural Economic Review, Vol. 14 No. 1, pp. 184-201. https://doi.org/10.1108/CAER-05-2020-0076