A Study On The Relationship Between Chinese Rural Land Transfer And Non-farm Income

With the promoting of rural land transfer, a series of basic issues appear: Can ruralland transfer increase the income of famers (especially the non-farm income) andimprove their living standard? Will non-agricultural employment inevitably lead to ruralland transfer? What factors restrict Chinese rural land transfer? With these issues, thispaper has a study on the relationship between Chinese rural land transfer and non-farmincome on the basis of existing research at home and abroad. This paper transverselyanalyzes the factors of rural land transfer and non-farm income from the point of theoryand finds that the marketization degree of rural land transfer, famers willingness tosupply and demand affect rural land transfer, while the condition of labor market, laborquality, local economic development status and famers’ initial endowment affectnon-farm income. Then this paper investigates the interaction between rural land transferand non-farm income, holds that on the one hand the proportion of non-farm income, therisks and stability of acquiring non-farm income impact the decision that whether farmerstransfer their land, on the other hand rural land transfer will impact the surplus labortransfer, property income and the local economy, and furthermore, it will affect thenon-farm income. However intergenerational division of labor, gender division of laborand the substitution of factors, such as labor, capital and technology, will disturb theirinteraction. On the basis of theoretical analysis, taking Shandong province as an examplethis paper empirically analyzes the relationship between the two research objects, thedata shows that there is a exist big fluctuation between the two objects. Finally this paperdraws a conclusion: In short term, because of the relevant policy change,intergenerational division of labor, gender division of labor and the factor substitution therelationship between rural land transfer and non-farm income is not stable, but it can bepredict that there was a positive correlation between rural land transfer and non-farm inthe long term.