A Study On Influences Of Land Transfer From Transaction Cost

Agricultural production in China is changing from traditional small-scale peasant production to large-scale modern agricultural production,but at present,the scale of agricultural land management is still generally small,therefore,China needs to further promote rural land transfer and accelerate the large-scale management.International experience shows that the imperfect capital market in developing countries often causes financial repression,which is caused by the government interest rate control policy and the information asymmetry in rural capital market.For China in the process of economic transformation,the imperfect rural formal capital market often restricts the expansion of farmers' scale of production and the improvement of agricultural production efficiency.Therefore,the imperfect rural capital market,especially the transaction cost of the capital market can affect the farmers' transfer behavior is the focus of this paper.To deeply understand China's land transfer problems and guide farmers to transfer their lands and promote land management on a large scale,surveys selecting farmers' financing as media to study their behaviors among farmers in Henan,Shanxi and Gansu with753 valid questionnaires from the aspect of transaction cost have been made for the paper.Basing on the theory of rent,property rights and transaction cost,the discourse depicted the loan demand of rural land transfer market and the supply of rural capital market,then a variable was set up and a model was built up according to this.In this paper,logit regression model is used to examine the impact of trading cost on the farmers' participation in rural land transfer,and then the Tobit regression model is used to test the impact of borrowing transaction costs on land transfer scale.I do as follows: First,variables were selected separately according to the search cost,negotiation cost and supervision execution cost to study the impacts on rural land transfer from formal lending market and private lending market,including the eager for participation and the transfer scale of both formal lending market and private lending market.Second,the impacts of a variety of transaction cost on rural land transfer were studied in a situation of land market transaction cost.Finally,some policy commendations were proposed according to the conclusions by analyses.The results of the study are as follows: Firstly,formal lending market has somewhat resisting force on rural land transfer because of the difficulty in acquiring the transfer capital;secondly,private lending market has an internal advantage over the formal ones,on the other hand,it is hard to carry out large amount loan or satisfy the demand of large scale transfer;thirdly,land market and land transfer have a more intricate procedure,and cost more game time,which increase the transfer negotiation cost and decline farmers' motivation to participate in land transfer.To conclude,the government side should play an important role in guidance,support as well as specifying by strengthening the agricultural loan supply to satisfy the agricultural production,enlarging the rural loan collateral scope to establish sound rural financial system,perfecting the information consulting agency to build up a rural financial service platform,specifying private financial support to guide private finance to a sound development.