Resources Science ›› 2019, Vol. 41 ›› Issue (9): 1675-1689.doi: 10.18402/resci.2019.09.09

Previous Articles     Next Articles

Impact of centralization degree of transfer-in land on production efficiency

LI Bowei1,2   

  1. 1. College of Economics and Management, Zhejiang A&F University, Hangzhou 311300, China
    2. Zhejiang Province Key Cultivating Think Tank: Research Academy for Rural Revitalization of Zhejiang Province, Zhejiang A&F University, Hangzhou 311300, China
  • Received:2018-12-24 Revised:2019-07-23 Online:2019-09-25 Published:2019-09-25

Abstract:

The imperfection of rural land market mechanism makes it difficult to achieve centralized land transfer. Clarifing the influence of transfer-in land’s centralization degree on production efficiency is beneficial to the healthy development of agriculture operation at moderate scales. This study analyzed the direct and indirect effects of transfer-in land dispersion on production efficiency and used the survey data of large grain farmers in Anhui Province in a simultaneous equation model to perform an empirical test. The main results include: (1) The output elasticity of capital and labor of farmers is 0.5246 and 0.0405 measured by a stochastic frontier analysis (SFA) model based on the yield of unit land area, and average technical efficiency of the farmers is 0.75. (2) The total effect of average size of transfer-in land on technical efficiency is 0.1132, in which the direct effect is 0.0827, the indirect effect on technical efficiency caused by reducing the number of employees is 0.0305, and the direct effect accounts for 73.06% of the total effect. (3) The result of robustness test with the number of transfer-in land parcels as an independent variable shows that the total effect of the number of transfer-in land parcels on technical efficiency is -0.3032, in which the direct effect is -0.2692, the indirect effect on technical efficiency caused by rising number of employees is -0.0340, and the direct effect accounts for 88.79% of the total effect. The main conclusions are: (1) With the present scale of farmland management capital is a more scarce factor than labor, farmers are generally experiencing diminishing returns to scale, and there is a relatively serious loss of technical efficiency. (2) Centralization of transfer-in land is conducive to improving technical efficiency, indirectly promoting technical efficiency by reducing the number of employees at the same time. On the contrary, dispersion of transfer-in land parcels leads to the loss of technical efficiency, including not only the direct loss of efficiency caused by the increase of production costs, but also the indirect loss of efficiency caused by the decrease of labor quality, moral hazard, and the rise of supervision costs caused by the increased number of employees, and comparatively the direct effect is greater than the indirect effect. This article clarifies that the key to further enhance the production efficiency of agriculture operation at moderate scales lies in promoting the centralized land transfer through improving the land transfer market.

Key words: land transfer, centralization degree, production efficiency, direct effect, indirect effect, large grain farmers, Anhui