Written or oral? The impact of social network relationships on land transfer contract choices: Evidence from the latest survey data in China
Year: 2025
Type: article
Study design: Observational Study
Abstract: Facilitating the transfer of rural land is a significant initiative by the Chinese government aimed at optimizing the allocation of land resources and promoting agricultural modernization. Among these initiatives, encouraging farmers to establish written contracts is essential for maintaining order in agricultural land transfers and promoting large-scale land management. However, a substantial number of rural households in China still transfer land through oral agreements, and the underlying reasons behind this practice remain insufficiently understood. This study is grounded in social network theory and the theory of differential order. Utilizing questionnaire survey data from 636 rural households in North China collected in 2024, we examine the influence of social network relationships, such as kinship and geographical ties, on the choice of agricultural land transfer contracts. Our findings reveal that social network relationships significantly impact the choice of agricultural land transfer contracts. The closer the kinship and geographical ties, the more inclined farmers are to transfer land through oral agreements. Additionally, we uncover the moderating roles of farmers' social trust and education level. Social trust amplifies the positive impact of social network relationships on the formation of oral agreements, while a higher level of education diminishes this effect. This paper provides a theoretical explanation for the widespread practice of oral contracting in rural land transfers in China. It also offers policy recommendations for the Chinese government.
Source: PLoS ONE
Authors: Zexiao Sun, Zhonghan Wang
Institutions: Hebei Agricultural University, Xi'an Jiaotong University
Language: English
Topic: Land Rights and Reforms
Subfield: Soil Science
Domain: Life Sciences
Open Access status: gold
Estimated APC paid: $2,382
Award: G8700744187
OpenAlex ID: W4416179083