Abstract
The purpose of this paper is to examine the impact of village debt on land transfer. Based on the county-level panel data of village finance and land transfer in 90 counties and 4 economic development zones of Zhejiang Province from 2013 to 2017, this paper carried out multivariate statistical analysis and set a fixed effect model to control the endogenous influence of region and time. It found that village debt as a pressure may encourage village committees to promote rural land transfer, and then especially promote land flows into agricultural firms; as a mechanism, the burden of village organization’s transactional debt (historical debt and administrative debt) is the key to promoting the rural land flow to agricultural enterprises; through further analysis, it is found that the village committee seeks "win-win" opportunities by intervening in land circulation to ensure the rights and interests of farmers and to obtain village benefits from them. This paper finds that this kind of push effect has the threshold, the debt will play a significant role in promoting when the debt rate is between 4.65% and 7.9%. In addition, there is regional heterogeneity in the contribution of debt, which exists only in plain, non-coastal and high-dependence areas. The results of this paper verify the view that "community mechanism and market mechanism are embedded and supported each other in acquaintance society" in the theory of community governance. In practice, it provides a realistic basis for policy makers to implement the policy of encouraging farmland circulation and properly deal with the problem of village debt.
Highlights
The issue of land transfer is one of the key issues in China’s large-scale management and rural revitalization
Based on the above theoretical model analysis, this paper proposes the following hypotheses: Hypothesis 1: Village-level debt is one of the reasons for the village committee to intervene in land transfer; and Hypothesis 2: There is a positive correlation between village-level debt and rural land circulation, that is, village-level debt has a significantly positive promoting effect on rural land transfer
The paper takes the village finance as the starting point to analyze the impact of rural debt on Positive effect of village debt on land transfer the village land transfer
Summary
The issue of land transfer is one of the key issues in China’s large-scale management and rural revitalization. In 1978, the household contract responsibility system, with the feature of “guaranteeing output to households,” initiated the reform of the rural grassroots agricultural management system in China. This reform realized the separation of land ownership and contract rights, enhanced farmers’ enthusiasm for farming, and greatly promoted agricultural growth. To change the current small-scale decentralized management mode of agricultural land and effectively improve agricultural production efficiency, the government has implemented a series of policies to promote the transfer of rural land management rights—that is, to promote the scale operation of agricultural land through land transfer, and to realize the synchronous development of national industrialization, information technology, urbanization, and agricultural modernization. In November 2014, the general office the State Council of the Central Committee of the Communist Party of China, announced the “Guiding Rural Land Management Rights Transfer with the Opinions of the Development of Moderate Scale Management of Agriculture”, which says the country should: adhere to rural collective land ownership, the stability of peasant household contract rights, allowing flexibility of management of the land based on household contract management, advancing family management, collective management, cooperative management, enterprise management, and other common development management styles
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