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The effects of telephone infrastructure on farmers' agricultural outputs in China

Author

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  • Rahman, Mohammad Mafizur
  • Mamun, Shamsul Arifeen Khan

Abstract

This paper examines the effect of farmers' access to communication technologies (CTs) on farmers' agricultural output at the aggregate level in the People's Republic of China (P.R. China) based on panel data. The paper uses a dynamic Cobb–Douglas aggregate production function and the generalised method of moments (GMM) as estimation techniques to estimate the parameters of interests. The research findings are: the estimated effects (measured by elasticity) of teledensity on the provincial level agricultural output have been positive and statistically significant both in the short and long runs. In the long-run, the size of the effect is substantial: from 0.94 to 1.06. This implies that the agriculture sector of the P. R. China has some potentials to derive benefit from the use of CTs like telephone. Hence, the Chinese government should consider policy support to expand communication infrastructure for the farmers.

Suggested Citation

  • Rahman, Mohammad Mafizur & Mamun, Shamsul Arifeen Khan, 2017. "The effects of telephone infrastructure on farmers' agricultural outputs in China," Information Economics and Policy, Elsevier, vol. 41(C), pages 88-95.
    • Handle: RePEc:eee:iepoli:v:41:y:2017:i:c:p:88-95
    DOI: 10.1016/j.infoecopol.2017.06.005
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    More about this item

    Keywords

    China; Cobb–Douglas production function; Generalised method of moments; Elasticity; Panel data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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