Digital Endowment, Farmland Transfer Rights and Farmers’ Income and Welfare

Abstract

Abstract: When modern digital information gets integrated into traditional agricultural production, could it play the role of rural land more effectively and stimulate the continuous increase of farmers’ income? By expanding the Todaro model and combining the Theil index, this paper constructs a mathematical model of China’s urban-rural dual economic structure to make an analysis from the perspective of information asymmetry. The study finds that sufficient digital endowment and improved farmland transfer rights significantly boost farmers’ income and welfare level, which means they can absolutely increase farmers’ net income, relatively narrow the gap between urban income and rural income, and accurately enhance farmers’ salary income; In the meantime, digital endowments can improve the efficiency of agricultural land transfer and achieve a new equilibrium in dynamic games. The paper tests the above conclusions using China’s 2002-2016 provincial panel data, and the results corroborate the applicability of the conclusions. Accordingly, exploiting modern digital endowments, strengthening land rights and improving the farmland market circulation mechanism can enhance farmers’ welfare to a notable extent and increase farmers’ income continuously.

Key words: digital endowment, farmland transfer rights, farmers’ income, welfare effect

Wu Minglang, Li Xuesong, Zhen Guangwen. Digital Endowment, Farmland Transfer Rights and Farmers’ Income and Welfare[J]. Management Review, 2022, 34(10): 291-303.

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