Agricultural land management and rural financial development: coupling and coordinated relationship and temporal-spatial disparities in China

Abstract

The integrated development of agricultural land and finance not only promotes rural financial innovation and breaks the bottleneck of agricultural financing but also facilitates agricultural land transfer and scaled operations. This leads to the advancement of the effective growth of contemporary agriculture. The reform of the 'separation of three rights' in agricultural land promotes land circulation, which, in turn, offers an institutional guarantee for the tandem development of rural finance and agricultural land management. This paper measures the comprehensive development index of agricultural land management and rural finance in 30 provinces of China from 2005 to 2020. In light of this, it calculates the degree of coupling and coordination between China's agricultural land management and rural financial development. The Dagum Gini coefficient, kernel density, and the Moran index were used to analyze regional differences and patterns of agglomeration. The study found that the degree of coupling coordination between China's agricultural land management and rural finance is increasing annually. However, there remains a significant gap in achieving high-quality coupling. Notably, the growth rate of rural financial development exceeds that of agricultural land management, and hypervariable density is a major source of regional variation. There is polarization in the coupled development of farmland management and rural finance. Provinces in the eastern and central regions tend to be located in the high–high agglomeration (H–H) in terms of the level of development of agricultural land and financial integration, while the western region tends to fall in low–low aggregation (L–L).

Has China’s Pilot Policy of Farmland Management Right Mortgage Loan Promoted County Agricultural Economic Growth?

“…The pilot policy of the FMRML (fed): In order to break the bottleneck of agricultural financing, in recent years, the Chinese government has taken farmland mortgages as a breakthrough and increased the pace of reform of farmland financialization [31]. Although many regions in China have conducted a lot of exploration and practice in rural land mortgage financing, the scope of influence was limited only to local areas, until the introduction of the FMRML pilot policy in 2016, when the scope of influence was expanded to the whole country.…”