Land Registration, Adjustment Experience, and Agricultural Machinery Adoption: Empirical Analysis from Rural China

Abstract

Land property security and advanced factor inputs play critical roles in agricultural modernization in developing countries. However, there are unclear relationships between land property security and advanced factor inputs. This study aims to clarify these relationships from the perspective of the differentiation of the realization process of land property security. From the perspective of property rights theory and endowment effects, data from 2934 farming households in rural China are used to determine the quantitative impacts of land registration and adjustment experience on the adoption of agricultural machinery. The results are as follows: (i) Land registration does not affect the adoption of agricultural machinery. (ii) Adjustment experience has a negative impact on the adoption of agricultural machinery. (iii) The interaction of land registration and adjustment experience has a positive impact on the adoption of agricultural machinery. This study provides some policy references with which developing countries can achieve agricultural modernization and revitalize the countryside by improving property rights security.