Does Land Transfer Enhance the Sustainable Livelihood of Rural Households? Evidence from China

Abstract

Land transfer and its socio-economic impact are key areas of research interest. Such an examination can help to enhance the sustainability of farming livelihoods, maximise livelihood strategies, and achieve sustainable development. This paper establishes a sustainable livelihood evaluation index for rural households based on sustainable livelihood theory. It measures the degree of sustainability in the livelihoods of farmers based on field research data from 650 rural households in Hubei Province, China, and analyses the impact of land transfer using a multiple linear regression model. A number of control variables were identified and introduced into the analysis. It also uses the regression decomposition approach to investigate the impact of each factor on the sustainable livelihoods of rural households. The findings revealed that (1) land transfer can significantly increase the sustainability of rural households’ livelihoods; (2) livelihood sustainability increases with the size of the land transfer area; and (3) the primary elements determining the ability of rural households to maintain sustainable living are land transfers, the amount of land transferred, and the size of the family. Based on these findings, this study argues for the need to improve land transfer management, accelerate agricultural industrialisation and promote the transfer of land contract management rights to improve the livelihoods of rural households.