The prevailing informal contracts of farmland transfer in China are facing frequent disputes and defaults, which call for effective self-enforcement mechanisms operating through transactors’ reputations and social networks. However, the effects of reputation on contract choice and self-enforcement have not been thoroughly considered and examined by existing research in the case of farmland transfer. This study explores the reputation’s ex-ante signaling effect on farmers’ contract choices and the ex-post penalty effect on farmers’ performance in informal contracts. Based on 403 transfer contracts obtained from a field survey conducted in the Hebei province of China, we apply the multinomial logit model and Heckman probit model to perform empirical analysis. The results show that, affected by the penalty effect, farmers with good reputations are more likely to fulfill informal contracts to avoid reputation damage and the resulting loss of future trading opportunities. However, in the ex-ante stage of contract choice, a farmer’s reputation has no significant signaling effect on the formation of informal contracts. The informal contracts are chosen due to farmers’ trust in the close social network and the demand for reduced transaction costs. These findings highlight the importance of personal reputation serving as a form of relational governance in the self-enforcement of informal contracts, which provides a means of enhancing the informal contract’s effectiveness in terms of farmland transfer in the rural acquaintance society. It also provides insights into the necessity of creating a supportive environment for informal rules. Policies should encourage the building of personal reputation and establishment of good social norms to form a long-term, stable and reasonable contractual relationship for farmland transfer.

Growing populations and rapid urbanization have put tremendous pressure on the food supply. The rural hinterland around cities is an important source of the urban food supply chain. Facing the constraints of China’s land stock, reasonable use of land space and optimization of agricultural crop structure is crucial to meet the food demand. Von Thünen Model, which is fronted by a 19th-century German economist, outlines a rural landscape of commercial farmers growing agricultural products for local markets while proposing basic patterns and principles of land use in agriculture. Using data from China’s OVOP (“One village, One product”), this paper analyzes the agricultural location and crop choices around two levels of cities (provincial capital cities, and county-level cities) by using Thünen’s theory. The results showed that crop density did decrease as the distance to urban increased. Crop rings are present in the vicinity of both metropolitan and county-level cities, distributed according to crop intensity. Evidence from China suggests that agricultural location and crop selection still follow the basic principles of the Thünen model. Planners and policymakers should refocus on the Von Thünen model to utilize land space and optimize agricultural production scientifically and efficiently.

PurposeThis article aims to examine the role of capital assets in rural household poverty transitions of poverty escape and poverty descent over periods of 2014–2016 and 2016–2018.Design/methodology/approachBased on the sustainable livelihood approach, this paper uses binary logit model to explore the influence of multidimensional capital assets on poverty transitions and use instrumental variable estimation to solve the endogeneity between total net asset and poverty transitions.FindingsCapital assets have significant impacts on household poverty transitions. The role of capital assets in households' poverty escape and poverty descent are not symmetrical. The authors verify that rural households with rich total net asset are more likely to escape poverty and less likely to descend into poverty by using instrumental variable estimation. The authors verify that there is a mediation effect that total net asset can help households' escaping poverty and prevent them from falling into poverty through promoting rural households to engage in business activities.Originality/valueThis paper is the first to explore how capital assets affect poverty transitions in rural China based on the sustainable livelihood approach. The findings of this research can provide valuable policy implications for the pursuit of common prosperity in China and references for other developing countries.