The impact of the digital economy on land transfer-out decisions among Chinese farmers: evidence from CHFS micro-data

Abstract

Land transfer is essential for advancing moderate-scale agriculture, and the digital economy plays a key role in facilitating these transfers. Based on microdata from four rounds of the China Household Finance Survey spanning from 2013 to 2019, this study employs a Linear Probability Model (LPM) to examine the impact of digital economy on rural land transfer-out decisions. The results indicate that: (1) The development of the digital economy significantly increases the likelihood of rural households transferring land out. Specifically, for each unit increase in the digital economy index, the probability of a household transferring land out increases by 3.39%. These conclusions remain robust even after accounting for endogeneity and conducting robustness checks. (2) The digital economy facilitates rural land transfer-out by promoting non-agricultural employment and entrepreneurship among farmers, as well as enhancing online social interactions and information acquisition. (3) There are heterogeneous impacts due to different scales and transferees, variations in physical and human capital, as well as differences in village topographies. This study deepens the understanding of the digital economy's impact on land transfer decision-making and provides relevant policy references for facilitating land transfer and agricultural modernization.