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Mechanization services, factor allocation, and farm efficiency: Evidence from China

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  • Meili Huan
  • Fengxia Dong
  • Liang Chi

Abstract

The relationship between mechanization services and farm efficiency remains a debate in agricultural production. To empirically test the effects of farmers' mechanization service use on farm efficiency, we formulate a stochastic frontier (SF) model and a mediating effect model. We apply our analysis to a survey data set with 1,385 farm‐level samples collected in 13 major maize‐producing provinces in China in 2018. To address the endogenous mechanization service adoption in the SF model, a probit model is estimated. In the mediation model, two factor allocation, including agricultural investment and crop structure, is examined. Our study shows that current labor migration encouraged the adoption of mechanization services, and larger farms were more likely to use mechanization services. Moreover, our study shows that the effect of mechanization services on farm efficiency is significantly positive and is mediated by factor allocation.

Suggested Citation

  • Meili Huan & Fengxia Dong & Liang Chi, 2022. "Mechanization services, factor allocation, and farm efficiency: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1618-1639, August.
    • Handle: RePEc:bla:rdevec:v:26:y:2022:i:3:p:1618-1639
    DOI: 10.1111/rode.12892
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    Cited by:

    1. Huan, Meili & Dong, Fengxia, 2023. "Sustainable Agricultural Practices and Crop Yield in China’s Maize Production," 2023 Annual Meeting, July 23-25, Washington D.C. 335656, Agricultural and Applied Economics Association.
    2. Adane Tufa & Arega Alene & Hambulo Ngoma & Paswel Marenya & Julius Manda & Md Abdul Matin & Christian Thierfelder & David Chikoye, 2024. "Willingness to pay for agricultural mechanization services by smallholder farmers in Malawi," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 248-276, January.
    3. Liang Chi & Shuqing Han & Meili Huan & Yajuan Li & Jifang Liu, 2022. "Land Fragmentation, Technology Adoption and Chemical Fertilizer Application: Evidence from China," IJERPH, MDPI, vol. 19(13), pages 1-17, July.
    4. Meili Huan & Shaoguo Zhan, 2022. "Agricultural Production Services, Farm Size and Chemical Fertilizer Use in China’s Maize Production," Land, MDPI, vol. 11(11), pages 1-17, October.
    5. Dianshuang Wang & Hongyun Huang & Xin Zhao & Fang Fang, 2023. "Green technological progress, agricultural modernization, and wage inequality: Lessons from China," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1673-1698, August.
    6. Thanh‐Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Internet use and agricultural productivity in rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1309-1326, August.
    7. Xiang Deng & Jie Peng & Chunlin Wan, 2024. "The Impact of Internet Use on Land Productivity: Evidence from China Land Economy Survey," Land, MDPI, vol. 13(2), pages 1-21, February.

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