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What constrains mechanization in Chinese agriculture? Role of farm size and fragmentation

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  • Wang, Xiaobing
  • Yamauchi, Futoshi
  • Huang, Jikun
  • Rozelle, Scott

Abstract

Rising real wages create an incentive for relatively large landholders to increase their scale of operations allowing them to mechanize and save labor (or to allow farmers to work more off farm). Using panel data collected in 2000 and 2008 from 951 farm households in 6 provinces in China, the empirical analysis shows that (i) changes in the willingness to pay to rent in land is systematically related to real off-farm wage growth and the relationship depends on the initial farm size, and (ii) the introduction of machines to substitute for labor became active in the areas where real wages increased fast but was significantly constrained by land size per plot (and the number of plots), that is, land fragmentation. Our results imply that when real wages rapidly increase and labor shortage becomes serious, fragmented land holdings significantly constrain the decision to mechanize and consolidating fragmented lands can lead to higher efficiency through mechanization.

Suggested Citation

  • Wang, Xiaobing & Yamauchi, Futoshi & Huang, Jikun & Rozelle, Scott, 2020. "What constrains mechanization in Chinese agriculture? Role of farm size and fragmentation," China Economic Review, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:chieco:v:62:y:2020:i:c:s1043951x18301172
    DOI: 10.1016/j.chieco.2018.09.002
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    9. Yishao Shi & Qianqian Yang & Liangliang Zhou & Shouzheng Shi, 2022. "Can Moderate Agricultural Scale Operations Be Developed against the Background of Plot Fragmentation and Land Dispersion? Evidence from the Suburbs of Shanghai," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    10. Selorm Yaotse Dorvlo & Elizabeth Mkandawire & Katy Roelich & Charles Blessings Jumbe, 2023. "Pathways and Interactions for Integrating Mechanisation into Sustainable Agricultural Production: The Case of Rice Production in Asutsuare, Ghana," Sustainability, MDPI, vol. 15(22), pages 1-17, November.
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    12. 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.
    13. Shengtian Jin & Zihan Mei & Kaifeng Duan, 2022. "Coupling Coordination of China’s Agricultural Environment and Economy under the New Economic Background," Agriculture, MDPI, vol. 12(8), pages 1-21, August.
    14. Xiaoxuan Chen & Tongshan Liu, 2023. "Can Agricultural Socialized Services Promote the Reduction in Chemical Fertilizer? Analysis Based on the Moderating Effect of Farm Size," IJERPH, MDPI, vol. 20(3), pages 1-16, January.
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    16. Ma, Meilin, 2023. "Interdependent investments in attached and movable assets under insecure land rights," China Economic Review, Elsevier, vol. 77(C).
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    19. Hongyun Zheng & Wanglin Ma, 2021. "The role of resource reallocation in promoting total factor productivity growth: Insights from China’s agricultural sector," Review of Development Economics, Wiley Blackwell, vol. 25(4), pages 2350-2371, November.
    20. 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.
    21. 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.
    22. Linyi Zheng & Liufang Su & Songqing Jin, 2023. "Reducing land fragmentation to curb cropland abandonment: Evidence from rural China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(3-4), pages 355-373, September.
    23. Yuewen Huo & Songlin Ye & Zhou Wu & Fusuo Zhang & Guohua Mi, 2022. "Barriers to the Development of Agricultural Mechanization in the North and Northeast China Plains: A Farmer Survey," Agriculture, MDPI, vol. 12(2), pages 1-14, February.

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    More about this item

    Keywords

    Wage; Mechanization; Land fragmentation;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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