The Impact of Government-Led Farmland Construction on Market-Oriented Farmland Transfer—Evidence from Shandong, China

Abstract

This study explored the impact of government-led high-standard farmland construction (HSFC) on market-oriented farmland transfer using a unified analysis framework of HSFC and farmland transfers. We used a binary probit model based on 660 questionnaires from five counties in Shandong Province, China to empirically analyze this impact. The results show that HSFC can significantly promote farmland lease-in while inhibiting lease-out. We found that farmland fragmentation plays a significant role in moderating this impact, which is illustrated by the fact that improved farmland fragmentation does not promote HSFC in the context of farmland lease-in. Furthermore, it can effectively alleviate the inhibitory effect of HSFC on farmland lease-out. The impact of HSFC on farmland transfer has significant labor transfer heterogeneity. For households with a low degree of labor transfer, HSFC can significantly promote farmland lease-in and inhibit lease-out, while for households with a high degree of labor transfer, the above effect is not significant.