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.
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Bibliographic InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 23 (2012)
Issue (Month): 1 ()
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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
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