What are the Determinants of Large‐Scale Farming in China?

16 Pages Posted: 24 Jul 2017

See all articles by Xing Xia

Xing Xia

China Agricultural University

Xian Xin

China Agricultural University - College of Economics and Management; University of Western Ontario

Ling Ma

China Agricultural University - College of Economics and Management; China Agricultural University - Center for Rural Development Policy

Date Written: July–August 2017

Abstract

The Chinese Government has increased its focus on expanding farm scale to promote agricultural development since 2010. A series of favorable polices has been adopted to support large‐scale farming. Using a multivariate probit model and 2015 and 2016 rural household survey data, the present paper examines the factors that influence small farmers' decision to become large‐scale farmers. The empirical regression results suggest that the decision to become a large‐scale farmer is significantly influenced by household human capital, cooperative membership, marketing channels, land‐transfer contracts and government policies. However, the influence of these factors differs with respect to becoming large‐scale grain and non‐grain farmers. These results imply that policy tools should target these factors and the appropriate group of small‐scale farmers. Generally, both central and local governments should promote large‐scale farming by enhancing rural households' human capital, improving marketing channels and providing agricultural social services, as well as encouraging returning migrant workers to engage in large‐scale farming.

Keywords: China, large‐scale farming, multiple probit

JEL Classification: Q12, Q15, Q18

Suggested Citation

Xia, Xing and Xin, Xian and Ma, Ling, What are the Determinants of Large‐Scale Farming in China? (July–August 2017). China & World Economy, Vol. 25, Issue 4, pp. 93-108, 2017, Available at SSRN: https://ssrn.com/abstract=3006349 or http://dx.doi.org/10.1111/cwe.12208

Xing Xia (Contact Author)

China Agricultural University ( email )

Beijing
China

Xian Xin

China Agricultural University - College of Economics and Management ( email )

Beijing
China

University of Western Ontario

1151 Richmond Street
Suite 2
London, Ontario N6A 5B8
Canada

Ling Ma

China Agricultural University - College of Economics and Management ( email )

Beijing
China

China Agricultural University - Center for Rural Development Policy

Beijing
China

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