Theoretical explanation and empirical test of the influence of irrigation institution on farmland transfer

Abstract

[Objective] The institution of irrigation is crucial for agricultural production and management, but its effect on farmland transfer has not been paid enough attention. Clarifying the relationship between the institution of irrigation and farmland transfer is of great significance for the agricultural modernization of China. [Methods] First, this study constructed a theoretical model to analyze the mechanism of irrigation institution affecting the farmland transfer; second, we conducted an empirical test using the survey data collected by China Institute of Rural Studies (CIRS) in 2017, and by employing the Tobit model as benchmark model, as well as the Propensity Score Matching (PSM) and Inverse-Probability Weighted Regression Adjustment (IPWRA) methods for robustness check. [Results] The results show that the unified irrigation arrangement increased farmland transfer in villages by 5 to 8 percentage points; and more frequent maintenance as well as better maintenance status of irrigation facilities also increased farmland transfer in villages. The effects of unified irrigation system and specific maintenance frequency and maintenance status of irrigation facilities on farmland transfer are also significant. [Conclusion] A healthy irrigation system and an effective irrigation facility management mechanism contribute to the realization of farmland transfer. The policy implication of the conclusion is that to promote the market-oriented circulation of farmland, we can focus on optimizing the irrigation institution.

Keywords

• |irrigation institution|irrigation arrangements|irrigation facility management and protection|farmland transfer|propensity score matching (psm)|inverse-probability weighted regression adjustment (ipwra)