Research on the Interaction Mechanism between Farmland Circulation and Non-Agricultural Industry from the Perspective of Equilibrium

Abstract

The “three rights division” is a major innovation in China’s land system. Under the framework of “three rights division”, there are corresponding policy constraints on the circulation of management rights of different types of land. This paper constructs a dynamic equilibrium model of farmland management right transfer from the macro level, and studies the economic connection between farmland circulation and non-agricultural sectors. The results show that there is an obvious economic interaction mechanism between the circulation of agricultural land and the development of regional non-agricultural industries, and circulation is a channel to communicate the flow of factors between the agricultural sector and the non-agricultural sector, and its flow trend is significantly affected by policies. There is a certain threshold for the start of agricultural land circulation, and the critical condition is that the industrial capital stock of the non-agricultural sector reaches a certain level. Therefore, to effectively promote the circulation of agricultural land, we cannot completely rely on the market, and the government’s action is crucial. Based on the analysis, this paper puts forward corresponding policy suggestions on guiding the circulation of farmland and better playing the role of circulation in promoting industrial development.