This study aimed to determine the impact of non-agricultural employment of peasants on their farmland transfer and investment in agricultural assets by using theoretical models and empirical analysis. The Heckman two-step approach and ordinary least squares method of econometric estimation were used to analyze the questionnaire survey data collected from Jiangxi Province in China. Non-agricultural employment led to reduction of investment in agricultural assets and renting of land. The remittance flows from non-farm income were mainly used to improve the current quality of life, particularly housing condition, rather than to invest in agricultural assets. Migration of laborers caused farmers to rent out farmland, but the inflow of remittances from non-farm income, which increased the capital stock, did not increase the renting in of farmland.


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