Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Better Implementation of the Rural Revitalization Strategy: China’s Land Transfer and Farmers’ Income

Version 1 : Received: 2 May 2024 / Approved: 6 May 2024 / Online: 7 May 2024 (17:14:07 CEST)

How to cite: Zhang, Q.; Huo, Y.; Han, Y.; Cao, T.; Chen, Z. Better Implementation of the Rural Revitalization Strategy: China’s Land Transfer and Farmers’ Income. Preprints 2024, 2024050324. https://doi.org/10.20944/preprints202405.0324.v1 Zhang, Q.; Huo, Y.; Han, Y.; Cao, T.; Chen, Z. Better Implementation of the Rural Revitalization Strategy: China’s Land Transfer and Farmers’ Income. Preprints 2024, 2024050324. https://doi.org/10.20944/preprints202405.0324.v1

Abstract

The United Nations Sustainable Development Goals call for the eradication of poverty, and China has proposed the Rural Revitalization Strategy based on the achievements of its poverty alleviation efforts in 2020. As a vital component of this strategy, the impact of land transfer on farmers' income growth has become a hot topic in both theoretical and practical sectors. This paper utilizes data from the CFPS database for the years 2010-2018 to construct OLS regression models and a Heckman two-stage model to analyze the effects of land transfers on the incomes of different types and sources among farmers. The empirical results show: First, land transfers do promote income growth among farmers, but the effect is primarily positive for those transferring out land, with negligible impact on those acquiring land. Second, the impact of land transfers varies between different types of income for transferees and transferors. Wage income contributes up to 88.26% to the income growth of transferors, a significantly higher rate than the decrease in business income; however, the increase in business income for transferees does not offset the decline in wage income, leading to no significant change in overall income. Further sensitivity analysis using the Heckman two-stage model confirms the robustness of these findings. The conclusions of this study provide theoretical and empirical evidence to optimize land transfer policies, enhance participation in land transfers, and ultimately achieve the mission of rural revitalization.

Keywords

land transfer; farmer income; heterogeneity in farmer types; heterogeneity in income types; rural revitalization

Subject

Social Sciences, Area Studies

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