Does rural-urban migration matter in the marketization of land rentals in China?

Drawing on data from the 2015 China Household Finance Survey, this paper assess the links between rural-urban migration and the marketization of land rentals. The estimated results indicate that farm households with more migrant labour are less likely to participate in land rentals, and lessees with more agricultural labour tend to use the rented land for non-grain production. Meanwhile, lessees with less migrated labour are more likely to rent land for profit and pay high land rent, even when land rentals are conducted between acquaintances. Further evidence shows that lessors with more migrated labour have a higher probability of leasing farmland for for-profit purposes and obtain high land rent. Our analysis reveals that with rural-urban migration, the marketization of land rentals between acquaintances in rural China increases if there emerge large numbers of lessees who are specialized in agricultural production.