IDEAS home Printed from https://ideas.repec.org/a/bla/canjag/v62y2014i2p219-243.html
   My bibliography  Save this article

The Influence of Labor Price Change on Agricultural Machinery Usage in Chinese Agriculture

Author

Listed:
  • Yumei Liu
  • Wuyang Hu
  • Simon Jetté-Nantel
  • Zhihong Tian

Abstract

type="main" xml:lang="fr"> La substitution entre la main-d'œuvre agricole et la machinerie constitue un déterminant fondamental de la production, de la structure et de l'efficacité des exploitations agricoles dans la plupart des pays développés et elle devrait jouer un rôle clé dans l'évolution de l'agriculture chinoise. À l'aide de données désagrégées sur les exploitations agricoles situées dans les provinces chinoises de Hebei et de Shandong, nous avons calculé les élasticités de substitution d' Allen et de Morishima entre les facteurs de la main-d'œuvre et de la machinerie. Le calcul de ces élasticités est basé sur des régressions apparemment indépendantes (SUR) et sur la minimisation des moindres carrés en trois étapes (3SLS). Contrairement aux études antérieures, nous avons subdivisé la machinerie en trois catégories : grosse, moyenne et petite. Nous avons également examiné l'endogénéité de la quantité d'extrants et des prix des intrants. Les résultats de notre étude illustrent clairement la substitution entre la main-d'œuvre et les trois catégories de machinerie et appuient aussi la substitution entre les trois catégories de machinerie.

Suggested Citation

  • Yumei Liu & Wuyang Hu & Simon Jetté-Nantel & Zhihong Tian, 2014. "The Influence of Labor Price Change on Agricultural Machinery Usage in Chinese Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 219-243, June.
    • Handle: RePEc:bla:canjag:v:62:y:2014:i:2:p:219-243
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/cjag.12024
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(4), pages 291-299.
    2. Hyunok Lee & Robert G. Chambers, 1986. "Expenditure Constraints and Profit Maximization in U.S. Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 857-865.
    3. Caves, Douglas W & Christensen, Laurits R, 1980. "Global Properties of Flexible Functional Forms," American Economic Review, American Economic Association, vol. 70(3), pages 422-432, June.
    4. Ma, Hengyun & Oxley, Les & Gibson, John & Kim, Bonggeun, 2008. "China's energy economy: Technical change, factor demand and interfactor/interfuel substitution," Energy Economics, Elsevier, vol. 30(5), pages 2167-2183, September.
    5. McNamara, Kevin T. & Weiss, Christoph R., 2005. "Farm Household Income and On-and-Off Farm Diversification," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(1), pages 1-12, April.
    6. Kemfert, Claudia, 1998. "Estimated substitution elasticities of a nested CES production function approach for Germany," Energy Economics, Elsevier, vol. 20(3), pages 249-264, June.
    7. Leo Kaas & Leopold Von Thadden, 2003. "Unemployment, Factor Substitution and Capital Formation," German Economic Review, Verein für Socialpolitik, vol. 4(4), pages 475-495, November.
    8. J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January.
    9. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    10. Shon P. Williams & C. Richard Shumway, 1998. "Aggregation of data and profit maximization in Mexican agriculture," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 235-244, February.
    11. Blackorby, Charles & Russell, R Robert, 1989. "Will the Real Elasticity of Substitution Please Stand Up? (A Comparison of the Allen/Uzawa and Morishima Elasticities)," American Economic Review, American Economic Association, vol. 79(4), pages 882-888, September.
    12. Vincent, David P., 1977. "Factor Substitution In Australian Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(2), pages 1-11, August.
    13. Hans P. Binswanger, 1974. "A Cost Function Approach to the Measurement of Elasticities of Factor Demand and Elasticities of Substitution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(2), pages 377-386.
    14. Berndt, Ernst R & Khaled, Mohammed S, 1979. "Parametric Productivity Measurement and Choice among Flexible Functional Forms," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1220-1245, December.
    15. Edward R. Morey, 1986. "An Introduction to Checking, Testing, and Imposing Curvature Properties: The True Function and the Estimated Function," Canadian Journal of Economics, Canadian Economics Association, vol. 19(2), pages 207-235, May.
    16. Farman Ali & Ashok Parikh, 1992. "Relationships among Labor, Bullock, and Tractor Inputs in Pakistan Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 371-377.
    17. Karagiannis, Giannis & Katranidis, Stelios & Velentzas, Kostas, 1996. "Decomposition Analysis of Factor Cost Shares: The Case of Greek Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(2), pages 369-379, December.
    18. Yohe, Gary, 1984. "Constant elasticity of substitution production functions with three or more inputs : An approximation procedure," Economics Letters, Elsevier, vol. 15(1-2), pages 29-34.
    19. Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-268, August.
    20. Ernst R. Berndt & Laurits R. Christensen, 1973. "The Internal Structure of Functional Relationships: Separability, Substitution, and Aggregation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 40(3), pages 403-410.
    21. Wayne Thirsk, 1974. "Factor Substitution in Colombian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 73-84.
    22. Lewbel, Arthur, 1996. "Aggregation without Separability: A Generalized Composite Commodity Theorem," American Economic Review, American Economic Association, vol. 86(3), pages 524-543, June.
    23. Olivier de La Grandville & Rainer Klump, 2000. "Economic Growth and the Elasticity of Substitution: Two Theorems and Some Suggestions," American Economic Review, American Economic Association, vol. 90(1), pages 282-291, March.
    24. Karagiannis, Giannis & Katranidis, Stelios D. & Velentzas, Kostas, 1996. "Decomposition Analysis Of Factor Cost Shares: The Case Of Greek Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-11, December.
    25. Berndt, Ernst R & Christensen, Laurits R, 1974. "Testing for the Existence of a Consistent Aggregate Index of Labor Inputs," American Economic Review, American Economic Association, vol. 64(3), pages 391-404, June.
    26. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
    27. Moro, Daniele, 2001. "Aggregation without separability: Composite commodity theorems in quantity-space," Economics Letters, Elsevier, vol. 71(1), pages 67-73, April.
    28. Ramon E. Lopez, 1980. "The Structure of Production and the Derived Demand for Inputs in Canadian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 38-45.
    29. Leo Kaas & Leopold von Thadden, 2003. "Unemployment, Factor Substitution and Capital Formation," German Economic Review, Verein für Socialpolitik, vol. 4, pages 475-495, November.
    30. Goel, Rajeev K, 1990. "The Substitutability of Capital, Labor, and R&D in U.S. Manufacturing," Bulletin of Economic Research, Wiley Blackwell, vol. 42(3), pages 211-227, July.
    31. Kjell Salvanes & Sigve Tjøtta, 1998. "A Note on the Importance of Testing for Regularities for Estimated Flexible Functional Forms," Journal of Productivity Analysis, Springer, vol. 9(2), pages 133-143, March.
    32. Ramon E. Lopez, 1984. "Estimating Substitution and Expansion Effects Using a Profit Function Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 358-367.
    33. Woodland, A D, 1975. "Substitution of Structures, Equipment and Labor in Canadian Production," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(1), pages 171-187, February.
    34. Zhao, Yaohui, 2002. "Causes and Consequences of Return Migration: Recent Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 376-394, June.
    35. Ji, Yueqing & Yu, Xiaohua & Zhong, Funing, 2012. "Machinery investment decision and off-farm employment in rural China," China Economic Review, Elsevier, vol. 23(1), pages 71-80.
    36. V. Eldon Ball & Robert G. Chambers, 1982. "An Economic Analysis of Technology in the Meat Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 699-709.
    37. David P. Vincent, 1977. "Factor Substitution In Australian Agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 21(2), pages 119-129, August.
    38. Berndt, Ernst R. & Christensen, Laurits R., 1973. "The translog function and the substitution of equipment, structures, and labor in U.S. manufacturing 1929-68," Journal of Econometrics, Elsevier, vol. 1(1), pages 81-113, March.
    39. Y. Mundlak, 1968. "Elasticities of Substitution and the Theory of Derived Demand," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(2), pages 225-236.
    40. Getu Hailu & Scott Jeffrey & James Unterschultz, 2005. "Cost Efficiency for Alberta and Ontario Dairy Farms: An Interregional Comparison," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2‐3), pages 141-160, June.
    41. Johannes Sauer, 2006. "Economic Theory and Econometric Practice: Parametric Efficiency Analysis," Empirical Economics, Springer, vol. 31(4), pages 1061-1087, November.
    42. Toshiyuki Kako, 1978. "Decomposition Analysis of Derived Demand for Factor Inputs: The Case of Rice Production in Japan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(4), pages 628-635.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hirsch, Stefan & Koppenberg, Maximilian, 2023. "Market power and profitability of organic versus conventional dairy farmers in the EU," 2023 Annual Meeting, July 23-25, Washington D.C. 335708, Agricultural and Applied Economics Association.
    2. Yiduo Sun & Ruifa Hu & Chao Zhang, 2021. "Impact of Rural–Urban Migration Experience on Rice Farmers’ Agricultural Machinery Expenditure: Evidence from China," Agriculture, MDPI, vol. 11(8), pages 1-15, August.
    3. Xiaoheng Zhang & Xiaohua Yu & Xu Tian & Xianhui Geng & Yingheng Zhou, 2019. "Farm size, inefficiency, and rice production cost in China," Journal of Productivity Analysis, Springer, vol. 52(1), pages 57-68, December.
    4. Hironori Yagi & Tsuneo Hayashi, 2021. "Machinery utilization and management organization in Japanese rice farms: Comparison of single‐family, multifamily, and community farms," Agribusiness, John Wiley & Sons, Ltd., vol. 37(2), pages 393-408, April.
    5. Maximilian Koppenberg, 2023. "Markups, organic agriculture and downstream concentration at the example of European dairy farmers," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 161-178, March.
    6. Xiaoheng Zhang & Guiquan Yan & Yucheng He & Hailong Yu, 2022. "Do Disease and Pest Control Outsourcing Services Reduce Arable Land Abandonment? Evidence from China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    7. Tatiana N. Litvinova & Galina A. Khmeleva & Lilia V. Ermolina & Tatiana V. Alferova & Irina V. Cheryomushkina, 2016. "Scenarios of Business Development in the Agricultural Machinery Market Under Conditions of International Trade Integration," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 10(4), December.
    8. Yagi, Hironori & Hayashi, Tsuneo, 2021. "Working conditions and labor flexibility in non-family farms: weather-based labor management by Japanese paddy rice corporations," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. He, Yongda & Lin, Boqiang, 2019. "Heterogeneity and asymmetric effects in energy resources allocation of the manufacturing sectors in China," Energy, Elsevier, vol. 170(C), pages 1019-1035.
    2. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.
    3. Lila J. Truett & Dale B. Truett, 2011. "Whither Germany and the EMU In a Challenging Environment?," Working Papers 0019, College of Business, University of Texas at San Antonio.
    4. Tocco, Barbara & Bailey, Alastair & Davidova, Sophia, 2013. "The Theoretical Framework and Methodology to Estimate the Farm Labour and Other Factor-Derived Demand and Output Supply Systems," Working papers 155702, Factor Markets, Centre for European Policy Studies.
    5. Liu, Kui & Bai, Hongkun & Yin, Shuo & Lin, Boqiang, 2018. "Factor substitution and decomposition of carbon intensity in China's heavy industry," Energy, Elsevier, vol. 145(C), pages 582-591.
    6. Sharimakin, Akinsehinwa, 2019. "Measuring the energy input substitution and output effects of energy price changes and the implications for the environment," Energy Policy, Elsevier, vol. 133(C).
    7. Koetse, Mark J. & de Groot, Henri L.F. & Florax, Raymond J.G.M., 2008. "Capital-energy substitution and shifts in factor demand: A meta-analysis," Energy Economics, Elsevier, vol. 30(5), pages 2236-2251, September.
    8. Abdullah, Maisom & Osman-Rani, H., 1989. "A Translog Cost Estimation of Capital-labour Substitubility in Malaysian Manufacturing Sector," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 20(December), pages 43-60.
    9. Yazid Dissou & Reza Ghazal, 2010. "Energy Substitutability in Canadian Manufacturing Econometric Estimation with Bootstrap Confidence Intervals," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 121-148.
    10. Matteo Manera & Bruno Sitzia, 2005. "Empirical factor demands and flexible functional forms: a bayesian approach," Economic Systems Research, Taylor & Francis Journals, vol. 17(1), pages 57-75.
    11. Zhu, Shu & Xu, Xin & Ren, Xiaojing & Sun, Tianhua & Oxley, Les & Rae, Allan & Ma, Hengyun, 2016. "Modeling technological bias and factor input behavior in China's wheat production sector," Economic Modelling, Elsevier, vol. 53(C), pages 245-253.
    12. Msangi, Siwa & Rosegrant, Mark, 2007. "A Closer Look at the IMPACT of Climate Change on Country-Level Food Security and Nutrition," Conference papers 331635, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Abdullah, Maisom, 1989. "Capital-labor substitutability in Malaysian manufacturing: alternative estimates and policy implications," ISU General Staff Papers 198901010800009905, Iowa State University, Department of Economics.
    14. Paul E. Brockway & Matthew K. Heun & João Santos & John R. Barrett, 2017. "Energy-Extended CES Aggregate Production: Current Aspects of Their Specification and Econometric Estimation," Energies, MDPI, vol. 10(2), pages 1-23, February.
    15. Matteo Manera & Michael McAleer, 2005. "Testing Multiple Non‐Nested Factor Demand Systems," Bulletin of Economic Research, Wiley Blackwell, vol. 57(1), pages 37-66, January.
    16. William A. Barnett & Ikuyasu Usui, 2007. "The Theoretical Regularity Properties of the Normalized Quadratic Consumer Demand Model," International Symposia in Economic Theory and Econometrics, in: Functional Structure Inference, pages 107-127, Emerald Group Publishing Limited.
    17. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    18. Truett, Lila J. & Truett, Dale B., 2003. "A cost function analysis of import demand and growth in South Africa," Journal of Development Economics, Elsevier, vol. 70(2), pages 425-442, April.
    19. Miguel A. Tovar and Emma M. Iglesias, 2013. "Capital-Energy Relationships: An Analysis when Disaggregating by Industry and Different Types of Capital," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    20. Lila J. Truett & Dale B. Truett, 2023. "The impacts of imports and trade liberalization in Brazil: Insights from an aggregate cost function," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1013-1033, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:canjag:v:62:y:2014:i:2:p:219-243. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/caefmea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.