Agricultural and Biological Sciences
3 years ago

Agricultural cooperatives boost land rental markets, reducing transaction costs in China

Land Use Policy
An empirical study of land rental development in rural Gansu, China: The role of agricultural cooperatives and transaction costs
Xinyi Li, Jun‐ichi Ito

Paper Summary

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The study looked at why more land is being rented in rural China, specifically in Gansu province. They found that agricultural cooperatives help increase land rental, while transaction costs make it harder. This means that farmers who are not part of big farms are renting more land, and it's important to reduce costs for land rental to work better.