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Increasing wage, mechanization, and agriculture production in China

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  • Qiao, Fangbin

Abstract

As the population bonus disappeared, the wage rate has increased significantly since the early 2000s in China. Increasing wages have significantly affected export-oriented industries as well as agriculture. Mechanization is another factor affecting China's agriculture. This study shows the increasing wage and the mechanization have a negative impact on land area devoted to labor-intensive crops but a positive impact on land area devoted to labor-extensive crops. Based on nationally representative data, the empirical results conform well to the theoretical predictions.

Suggested Citation

  • Qiao, Fangbin, 2017. "Increasing wage, mechanization, and agriculture production in China," China Economic Review, Elsevier, vol. 46(C), pages 249-260.
    • Handle: RePEc:eee:chieco:v:46:y:2017:i:c:p:249-260
    DOI: 10.1016/j.chieco.2017.10.002
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    Cited by:

    1. Zhou, Xiaoshi & Ma, Wanglin, 2021. "Effects of Agricultural Mechanization on Land Productivity: Evidence from China," 2021 Conference, August 17-31, 2021, Virtual 315143, International Association of Agricultural Economists.
    2. Fangbin Qiao, 2020. "The Impact of Agricultural Service on Grain Production in China," Sustainability, MDPI, vol. 12(15), pages 1-18, August.
    3. Zhoufu Yan & Shurui Zhang & Fangwei Wu & Binlei Gong, 2023. "Increasing Wages, Factor Substitution, and Cropping Pattern Changes in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(5), pages 190-214, September.
    4. Liu, Xinyue & Wang, Xiaobing & Xu, Zhigang, 2023. "The polarization and constraints of scale farming in China under the impact of rising wages," Journal of Asian Economics, Elsevier, vol. 86(C).
    5. Yu Xu & Liangjie Xin & Xiubin Li & Minghong Tan & Yahui Wang, 2019. "Exploring a Moderate Operation Scale in China’s Grain Production: A Perspective on the Costs of Machinery Services," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    6. Tomasz Rokicki & Aleksandra Perkowska & Bogdan Klepacki & Piotr Bórawski & Aneta Bełdycka-Bórawska & Konrad Michalski, 2021. "Changes in Energy Consumption in Agriculture in the EU Countries," Energies, MDPI, vol. 14(6), pages 1-21, March.
    7. Yuxin Cui, 2023. "Mechanization's impact on agricultural total factor productivity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 446-457.
    8. Wangda Liao & Fusheng Zeng & Meseret Chanieabate, 2022. "Mechanization of Small-Scale Agriculture in China: Lessons for Enhancing Smallholder Access to Agricultural Machinery," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    9. Xi Yu & Xiyang Yin & Yuying Liu & Dongmei Li, 2021. "Do Agricultural Machinery Services Facilitate Land Transfer? Evidence from Rice Farmers in Sichuan Province, China," Land, MDPI, vol. 10(5), pages 1-14, April.
    10. Xiaoshi Zhou & Wanglin Ma & Gucheng Li & Huanguang Qiu, 2020. "Farm machinery use and maize yields in China: an analysis accounting for selection bias and heterogeneity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1282-1307, October.
    11. Qian, Long & Lu, Hua & Gao, Qiang & Lu, Hualiang, 2022. "Household-owned farm machinery vs. outsourced machinery services: The impact of agricultural mechanization on the land leasing behavior of relatively large-scale farmers in China," Land Use Policy, Elsevier, vol. 115(C).
    12. Yang, Zhiyuan & Zhu, Yuemei & Zhang, Jinyue & Li, Xuyi & Ma, Peng & Sun, Jiawei & Sun, Yongjian & Ma, Jun & Li, Na, 2022. "Comparison of energy use between fully mechanized and semi-mechanized rice production in Southwest China," Energy, Elsevier, vol. 245(C).
    13. Xiaoshi Zhou & Wanglin Ma & Gucheng Li, 2018. "Draft Animals, Farm Machines and Sustainable Agricultural Production: Insight from China," Sustainability, MDPI, vol. 10(9), pages 1-16, August.
    14. Lili Guo & Yuting Song & Shuang Zhao & Mengqian Tang & Yangli Guo & Mengying Su & Houjian Li, 2022. "Dynamic Linkage between Aging, Mechanizations and Carbon Emissions from Agricultural Production," IJERPH, MDPI, vol. 19(10), pages 1-22, May.
    15. Stanisław Bielski & Renata Marks-Bielska & Paweł Wiśniewski, 2022. "Investigation of Energy and Economic Balance and GHG Emissions in the Production of Different Cultivars of Buckwheat ( Fagopyrum esculentum Moench): A Case Study in Northeastern Poland," Energies, MDPI, vol. 16(1), pages 1-24, December.
    16. Fan, Pengfei & Mishra, Ashok K. & Feng, Shuyi & Su, Min, 2023. "Investigating the Impact of Agricultural Subsidy on Chemical Fertilizer Use in China," 2023 Annual Meeting, July 23-25, Washington D.C. 337098, Agricultural and Applied Economics Association.
    17. Shiyang Li & Huasheng Zhu, 2020. "Agglomeration Externalities and Skill Upgrading in Local Labor Markets: Evidence from Prefecture-Level Cities of China," Sustainability, MDPI, vol. 12(16), pages 1-15, August.
    18. Yuanying Chi & Wenbing Zhou & Zhenyu Wang & Yu Hu & Xiao Han, 2021. "The Influence Paths of Agricultural Mechanization on Green Agricultural Development," Sustainability, MDPI, vol. 13(23), pages 1-16, November.
    19. Shuangjin Wang & Yuan Tian & Xiaowei Liu & Maggie Foley, 2019. "How Farmers Make Investment Decisions: Evidence from a Farmer Survey in China," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    20. Tongwei Xie & Changjiang Xiong & Qing Xu & Tianshu Zhou, 2022. "The Impact of Social Pension Scheme on Farm Production in China: Evidence from the China Health and Retirement Longitudinal Survey," IJERPH, MDPI, vol. 19(4), pages 1-13, February.
    21. Lu Cai & Chaoqing Chai & Bangbang Zhang & Feng Yang & Wei Wang & Chengdong Zhang, 2022. "The Theoretical Approach and Practice of Farmland Rights System Reform from Decentralization to Centralization Promoting Agricultural Modernization: Evidence from Yuyang District in Shaanxi, China," Land, MDPI, vol. 11(12), pages 1-16, December.
    22. Wei Li & Xipan Wei & Ruixiang Zhu & Kangquan Guo, 2018. "Study on Factors Affecting the Agricultural Mechanization Level in China Based on Structural Equation Modeling," Sustainability, MDPI, vol. 11(1), pages 1-16, December.
    23. Zou, Baoling & Mishra, Ashok K., 2023. "Does Mechanization Improve the Regional Economy? A County-Level Empirical Assessment from China," 2023 Annual Meeting, July 23-25, Washington D.C. 335478, Agricultural and Applied Economics Association.
    24. Yuanjie Zhang & Shichao Yuan & Jian Wang & Jian Cheng & Daolin Zhu, 2022. "How Do the Different Types of Land Costs Affect Agricultural Crop-Planting Selections in China?," Land, MDPI, vol. 11(11), pages 1-18, October.

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    More about this item

    Keywords

    Increasing wage; Mechanization; Labor-intensive; Labor-extensive; China;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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