Machinery investment decision and off-farm employment in rural China
AbstractThis paper investigates the endogenous linkages between farmers' machinery investment decision and off-farm employment in China. Both the theoretical model and the empirical results based on a survey of 453 households in Anhui Province indicate that agricultural labor input and small-sized machinery investment are gross complements rather than substitutes when machinery services are available in the market. Consequently, farmers with small-sized machinery are more likely to reduce their off-farm employment time. On the other hand, an increase in off-farm employment is more likely to reduce the possibility of possessing small-sized machineries mainly due to substitution effects of market machinery services.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 23 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/chieco
Small-size machinery; Off-farm employment; Complements; China;
Other versions of this item:
- Ji, Yueqing & Zhong, Funing & Yu, Xiaohua, 2011. "Machinery investment decision and off-farm employment in rural China," IAMO Forum 2011: Will the "BRICs Decade" Continue? â Prospects for Trade and Growth 5, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Justin Yifu Lin, 1990.
"Collectivization and China's Agricultural Crisis in 1959-1961,"
UCLA Economics Working Papers
579, UCLA Department of Economics.
- Lin, Justin Yifu, 1990. "Collectivization and China's Agricultural Crisis in 1959-1961," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1228-52, December.
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002.
"The Evolution of China's Rural Labor Markets During the Reforms,"
Journal of Comparative Economics,
Elsevier, vol. 30(2), pages 329-353, June.
- de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution Of China'S Rural Labor Markets During The Reforms," Working Papers 11984, University of California, Davis, Department of Agricultural and Resource Economics.
- Adams, Richard H., 2001. "Nonfarm income, inequality, and poverty in rural Egypt and Jordan," Policy Research Working Paper Series 2572, The World Bank.
- Feder, Gershon, et al, 1992.
"The Determinants of Farm Investment and Residential Construction in Post-Reform China,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 41(1), pages 1-26, October.
- Feder, Gershon & Lau, Lawrence J. & Lin, Justin & Luo Xiaopeng, 1990. "The determinants of farm investment and residential construction in post-reform China," Policy Research Working Paper Series 471, The World Bank.
- SHI, Xiaoping & Heerink, Nico & Qu, Futian, 2007. "Choices between different off-farm employment sub-categories: An empirical analysis for Jiangxi Province, China," China Economic Review, Elsevier, vol. 18(4), pages 438-455.
- Larson, David F. & Butzer, Rita & Mundlak, Yair & Crego, Al, 2000. "A Cross-Country Database for Sector Investment and Capital," World Bank Economic Review, World Bank Group, vol. 14(2), pages 371-91, May.
- Foltz, Jeremy D. & Aldana, Ursula, 2006. "Off-Farm Work and On-Farm Investment," 2006 Annual meeting, July 23-26, Long Beach, CA 21185, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Liu, Yunhua & Wang, Xiaobing, 2005. "Technological progress and Chinese agricultural growth in the 1990s," China Economic Review, Elsevier, vol. 16(4), pages 419-440.
- Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
- Wang, Xiaobing & Herzfeld, Thomas & Glauben, Thomas, 2007. "Labor allocation in transition: Evidence from Chinese rural households," China Economic Review, Elsevier, vol. 18(3), pages 287-308.
- Mundlak, Yair, 1993. "On the Empirical Aspects of Economic Growth Theory," American Economic Review, American Economic Association, vol. 83(2), pages 415-20, May.
- Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
- 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.
- Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
- Rosenzweig, Mark R, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 31-55, February.
- Yanjie Zhang & Xiaobing Wang & Thomas Glauben & Bernhard Brümmer, 2011. "The impact of land reallocation on technical efficiency: evidence from China," Agricultural Economics, International Association of Agricultural Economists, vol. 42(4), pages 495-507, 07.
- Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, vol. 68(2), pages 329-353, August.
- Carl J. Lagerkvist & Karin Larsen & Kent D. Olson, 2007. "Off-farm income and farm capital accumulation: a farm-level analysis," Agricultural Finance Review, Emerald Group Publishing, vol. 67(2), pages 241-257, September.
- de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
- Xiaohua Yu & Guoqing Zhao, 2009. "Chinese agricultural development in 30 years: A literature review," Frontiers of Economics in China, Springer, vol. 4(4), pages 633-648, December.
- Huang, Jikun & Wang, Xiaobing & Rozelle, Scott, 2013. "The subsidization of farming households in China’s agriculture," Food Policy, Elsevier, vol. 41(C), pages 124-132.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.