Research On Rural Housing Investment

Why the peasants in rural China are keen for housing investment? This article will explore it from the perspective of intergenerational investment by comparing two similar intergenerational investment channels:housing investment and education investment. The peasants’choice between them will help us understand the upsurge housing investment in rural China these years better.This research for the rural housing investment is part of the study of peasant household investment behavior, which has been an important branch of theory of peasant behavior. On the other hand, the rural and farmer problem has always been one of the most important issues for Chinese government. It is of great importance to understand the peasants’behavior and then help them invest efficiently and rationally to improve their life. Besides, the rural housing investment is also correlated to farmland protection and residential land management, understanding the reason for housing investment can be helpful in making proper policies for farmland protection and residential land management.Compared to the existing researches, the key point of this paper is that the rural housing investment is not an isolated behavior, but an intergenerational investment pattern in rural China and a rational choice between housing and education investment under certain circumstances. This paper will provide theoretical and empirical proof for the substitution of housing and education investment. In addition, this paper will also analyze the choice mechanism between housing and education investment from the perspective of rural income level, difference of investment risk and investment return ratio.The conclusion of this paper is that although housing investment and education investment are similar investment channels to get elderly support and achieve other social goals, but the restricted income, relatively high education investment risk and widening gap of education investment return ratio are important consideration to choose housing investment instead of education investment.