Renting from strangers boosts profits for acquaintances in rural China
In rural China, when strangers from different areas rent land, it can influence how locals rent land to each other. By studying data from a 2015 survey, researchers found that introducing outside renters can encourage locals to ask for higher payments when renting land to friends or family. This means locals might be more likely to rent out their land for profit. The key reason for this is that seeing outsiders making money motivates locals to do the same. This study suggests that seeing strangers rent land successfully can help improve how land is rented among acquaintances in rural areas.