Machinery investment decision and off-farm employment in rural China
This 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.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- 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.
- 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.
- Larson, Donald & Butzer, Rita & Mundlak, Yair & Crego, Al, 1999.
"A Cross-Country Database for Sector Investment and Capital,"
232817, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
- 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.
- Larson, Donald & Butzer, Rita & Mundlak, Yair & Crego, Al, 1999. "A Cross-Country Database for Sector Investment and Capital," Working Papers 232817, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
- 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).
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Xiaohua Yu & Guoqing Zhao, 2009. "Chinese agricultural development in 30 years: A literature review," Frontiers of Economics in China, Springer;Higher Education Press, vol. 4(4), pages 633-648, December.
- 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.
- YU Xiaohua & ZHAO Guoqing, 2009. "Chinese agricultural development in 30 years: A literature review," Frontiers of Economics in China, Higher Education Press, vol. 4(4), pages 633-648, December.
- 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.
- 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.
- 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.
- Adams, Richard H., 2001. "Nonfarm income, inequality, and poverty in rural Egypt and Jordan," Policy Research Working Paper Series 2572, The World Bank.
- Liu, Yunhua & Wang, Xiaobing, 2005. "Technological progress and Chinese agricultural growth in the 1990s," China Economic Review, Elsevier, vol. 16(4), pages 419-440.
- Mark R. Rosenzweig, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, Oxford University Press, vol. 94(1), pages 31-55.
- de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
- Kada, Ryohei, 1992. "Capital Formation of the Farm Household and Resource Allocation in Agricultural-Rural Sectors: An Analysis of Sustainability of Japanese Agriculture," 1991 Conference, August 22-29, 1991, Tokyo, Japan 183346, International Association of Agricultural Economists.
- 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.
- Mundlak, Yair, 1993. "On the Empirical Aspects of Economic Growth Theory," American Economic Review, American Economic Association, vol. 83(2), pages 415-20, May.
When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:23:y:2012:i:1:p:71-80. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.