IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v15y2025i11p1151-d1665719.html
   My bibliography  Save this article

The Role of Agricultural Socialized Services in Mitigating Rural Labor Shortages: A Multi-Crop Analysis of Production Performance

Author

Listed:
  • Zhixiong Liu

    (College of Artificial Intelligences, Guangxi Minzu University, Nanning 530006, China)

  • Yuheng Wei

    (College of Economic, Guangxi Minzu University, Nanning 530007, China)

  • Ruofan Liao

    (College of Economic, Guangxi Minzu University, Nanning 530007, China)

  • Jianxu Liu

    (School of Economics, Shandong University of Finance and Economics, Jinan 250014, China)

Abstract

China’s agricultural sector faces unprecedented challenges due to rapid urbanization. The rural labor force is declining, and the agricultural workforce is aging significantly. This labor shortage, worsened by the exodus of agricultural technicians, threatens food security and agricultural sustainability. This study analyzes data from 30 Chinese provinces from 2011 to 2022 using a transcendental logarithmic production function. The research examines how agricultural socialized services can alleviate rural labor shortages by improving production efficiency. It also investigates these services’ impact on labor input intensity and grain yield across different crops and regions. The results show that socialized agricultural services effectively promote food production. At the national level, these services can promote a 54.4% increase in total crop production. Agricultural socialized services are gradually developing toward labor substitution. The significant negative interaction coefficient between services and labor confirms this substitution effect. The input–output elasticity of these services is positive for total crop and cereal crop production in major production areas. It also shows positive elasticity for total crop and tuber crop production in non-major production areas. The national-level “service-labor” technical elasticity of substitution maintains values above zero, averaging 0.37 across regions, offering an effective solution to agricultural labor shortages. This study identifies a threshold effect where these services’ impact on food production significantly increases with business scale expansion. These findings highlight the importance of optimizing agricultural socialized services through strengthened service systems, differentiated regional strategies, technological innovation, and comprehensive support policies. Such targeted approaches would enhance substitution effects and service efficiency, addressing labor shortages and boosting food production.

Suggested Citation

  • Zhixiong Liu & Yuheng Wei & Ruofan Liao & Jianxu Liu, 2025. "The Role of Agricultural Socialized Services in Mitigating Rural Labor Shortages: A Multi-Crop Analysis of Production Performance," Agriculture, MDPI, vol. 15(11), pages 1-39, May.
    • Handle: RePEc:gam:jagris:v:15:y:2025:i:11:p:1151-:d:1665719
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/15/11/1151/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/15/11/1151/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dwayne Benjamin & Loren Brandt, 2002. "Property rights, labour markets, and efficiency in a transition economy: the case of rural China," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 689-716, November.
    2. Taylor, J Edward & Rozelle, Scott & de Brauw, Alan, 2003. "Migration and Incomes in Source Communities: A New Economics of Migration Perspective from China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 75-101, October.
    3. Olmstead, Alan L. & Rhode, Paul W., 2001. "Reshaping The Landscape: The Impact And Diffusion Of The Tractor In American Agriculture, 1910–1960," The Journal of Economic History, Cambridge University Press, vol. 61(3), pages 663-698, September.
    4. Gokul P. Paudel & Trung Thanh Nguyen & Ulrike Grote, 2025. "Trade‐offs between labour migration and agricultural productivity: Evidence from smallholder wheat systems in Nepal," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(1), pages 202-229, January.
    5. Zhang, Kevin Honglin & Song, Shunfeng, 2003. "Rural-urban migration and urbanization in China: Evidence from time-series and cross-section analyses," China Economic Review, Elsevier, vol. 14(4), pages 386-400.
    6. Ragasa, Catherine & Mazunda, John, 2018. "The impact of agricultural extension services in the context of a heavily subsidized input system: The case of Malawi," World Development, Elsevier, vol. 105(C), pages 25-47.
    7. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
    8. Michael R. Carter & Yang Yao, 2002. "Local versus Global Separability in Agricultural Household Models: The Factor Price Equalization Effect of Land Transfer Rights," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 702-715.
    9. Reardon, Thomas & Echeverria, Ruben & Berdegué, Julio & Minten, Bart & Liverpool-Tasie, Saweda & Tschirley, David & Zilberman, David, 2019. "Rapid transformation of food systems in developing regions: Highlighting the role of agricultural research & innovations," Agricultural Systems, Elsevier, vol. 172(C), pages 47-59.
    10. Jikun Huang & Scott Rozelle, 1995. "Environmental Stress and Grain Yields in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 853-864.
    11. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    12. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    13. Jin Yang & Zuhui Huang & Xiaobo Zhang & Thomas Reardon, 2013. "The Rapid Rise of Cross-Regional Agricultural Mechanization Services in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(5), pages 1245-1251.
    14. Christopher B. Barrett & Luc Christiaensen & Megan Sheahan & Abebe Shimeles, 2017. "On the Structural Transformation of Rural Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 26(suppl_1), pages 11-35.
    15. Bowei Li & Yanjun Qian & Fanbin Kong, 2023. "Does Outsourcing Service Reduce the Excessive Use of Chemical Fertilizers in Rural China? The Moderating Effects of Farm Size and Plot Size," Agriculture, MDPI, vol. 13(10), pages 1-18, September.
    16. Yu Bai & Yuheng Wei & Ruofan Liao & Jianxu Liu, 2025. "The Role of Agricultural Socialized Services in Unlocking Agricultural Productivity in China: A Spatial and Threshold Analysis," Agriculture, MDPI, vol. 15(9), pages 1-23, April.
    17. Xin Zhang & Eric A. Davidson & Denise L. Mauzerall & Timothy D. Searchinger & Patrice Dumas & Ye Shen, 2015. "Managing nitrogen for sustainable development," Nature, Nature, vol. 528(7580), pages 51-59, December.
    18. J. Edward Taylor & Scott Rozelle & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May.
    19. Ruofan Liao & Zhengtao Chen & Jirakom Sirisrisakulchai & Jianxu Liu, 2025. "Enhancing Rural Economic Sustainability in China Through Agricultural Socialization Services: A Novel Perspective on Spatial-Temporal Dynamics," Agriculture, MDPI, vol. 15(3), pages 1-28, January.
    20. Diao, Xinshen & Magalhaes, Eduardo & Silver, Jed, 2019. "Cities and rural transformation: A spatial analysis of rural livelihoods in Ghana," World Development, Elsevier, vol. 121(C), pages 141-157.
    21. Cohen, Barney, 2006. "Urbanization in developing countries: Current trends, future projections, and key challenges for sustainability," Technology in Society, Elsevier, vol. 28(1), pages 63-80.
    22. Sanjeev Dewan & Chung-ki Min, 1997. "The Substitution of Information Technology for Other Factors of Production: A Firm Level Analysis," Management Science, INFORMS, vol. 43(12), pages 1660-1675, December.
    23. Ziqi Zhang & Jingyi Ding & Kuan Zhang & Xin Deng, 2025. "Impact of Aging on Farmland Abandonment: Evidence from Rural China," Land, MDPI, vol. 14(2), pages 1-27, February.
    24. Zhang, Xiaobo & Yang, Jin & Wang, Shenglin, 2011. "China has reached the Lewis turning point," China Economic Review, Elsevier, vol. 22(4), pages 542-554.
    25. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    26. Jock R. Anderson, 2004. "Agricultural Extension: Good Intentions and Hard Realities," The World Bank Research Observer, World Bank, vol. 19(1), pages 41-60.
    27. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    28. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara, 2014. "Mechanization in Ghana: Emerging demand, and the search for alternative supply models," Food Policy, Elsevier, vol. 48(C), pages 168-181.
    29. HU, Ruifa & YANG, Zhijian & KELLY, Peter & HUANG, Jikun, 2009. "Agricultural extension system reform and agent time allocation in China," China Economic Review, Elsevier, vol. 20(2), pages 303-315, June.
    30. David H. Autor, 2015. "Why Are There Still So Many Jobs? The History and Future of Workplace Automation," Journal of Economic Perspectives, American Economic Association, vol. 29(3), pages 3-30, Summer.
    31. Yong-Geon Lee & Kwideok Han & Chanjin Chung & Inbae Ji, 2024. "Effects of Smart Farming on the Productivity of Korean Dairy Farms: A Case Study of Robotic Milking Systems," Sustainability, MDPI, vol. 16(22), pages 1-18, November.
    32. Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
    33. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    34. Yan Xu & Jie Lyu & Dandan Yuan & Guanqiu Yin & Junyan Zhang, 2025. "The Impact of Agricultural Machinery Services on Food Loss at the Producer Level: Evidence from China," Agriculture, MDPI, vol. 15(3), pages 1-20, January.
    35. Diao, Xinshen & Fang, Peixun & Magalhaes, Eduardo & Pahl, Stefan & Silver, Jed, 2019. "Cities and rural transformation: A spatial analysis of rural youth livelihoods in Ghana," IFPRI book chapters, in: Youth and jobs in rural Africa: Beyond stylized facts, chapter 7, pages yj172-204, International Food Policy Research Institute (IFPRI).
    36. Guanqing Xu & Yifei Ma & Guoqing Qin & Caihua Xu & Yuchun Zhu, 2025. "Why Chinese farmers are reluctant to transfer their land in the context of non-agricultural employment: insights from agricultural mechanization," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    37. Shenggen Fan & Xiaobo Zhang & Sherman Robinson, 2003. "Structural Change and Economic Growth in China," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 360-377, August.
    38. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    39. Kangjian Zhou & Xungang Zheng, 2025. "How Does the Growth of Digital Technology Influence Farmland Abandonment? Evidence from Rural China," Sustainability, MDPI, vol. 17(5), pages 1-19, March.
    40. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    41. Oliyad Sori Zenbaba & Mengistu Ketema & Moti Jaleta & Kedir Jemal, 2025. "Impact of wheat production technology packages adoption on smallholder farmers’ food security and income in Horo Guduru Wollega Zone, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-26, December.
    42. Tao Chen & Muhammad Rizwan & Azhar Abbas, 2022. "Exploring the Role of Agricultural Services in Production Efficiency in Chinese Agriculture: A Case of the Socialized Agricultural Service System," Land, MDPI, vol. 11(3), pages 1-18, February.
    43. Liu, Yanyan & Barrett, Christopher B. & Pham, Trinh & Violette, William, 2020. "The intertemporal evolution of agriculture and labor over a rapid structural transformation: Lessons from Vietnam," Food Policy, Elsevier, vol. 94(C).
    44. Zou, Baoling & Chen, Yudan & Mishra, Ashok K. & Hirsch, Stefan, 2024. "Agricultural mechanization and the performance of the local Chinese economy," Food Policy, Elsevier, vol. 125(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.
    2. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    3. Kai Huang & Xin Deng & Yi Liu & Zhuolin Yong & Dingde Xu, 2020. "Does off-Farm Migration of Female Laborers Inhibit Land Transfer? Evidence from Sichuan Province, China," Land, MDPI, vol. 9(1), pages 1-14, January.
    4. Wang, Xiaobing & Yamauchi, Futoshi & Otsuka, Keijiro & Huang, Jikun, 2016. "Wage Growth, Landholding, and Mechanization in Chinese Agriculture," World Development, Elsevier, vol. 86(C), pages 30-45.
    5. Feng, Shuyi & Heerink, Nico & Ruben, Ruerd & Qu, Futian, 2010. "Land rental market, off-farm employment and agricultural production in Southeast China: A plot-level case study," China Economic Review, Elsevier, vol. 21(4), pages 598-606, December.
    6. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    7. Wenjing Han & Zhengfeng Zhang & Xiaoling Zhang & Li He, 2021. "Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China," Land, MDPI, vol. 10(9), pages 1-22, August.
    8. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 42, number 92321.
    9. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin & Li, Xiaoshun, 2020. "Land rental market and agricultural labor productivity in rural China: A mediation analysis," World Development, Elsevier, vol. 135(C).
    10. Wang, Xiaobing & Yu, Xiaohua, 2011. "Scale Effects, Technical Efficiency and Land Lease in China," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115736, European Association of Agricultural Economists.
    11. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    12. Jia, Lili & Petrick, Martin, 2014. "How does land fragmentation affect off-farm labor supply: panel data evidence from China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 369-380.
    13. Shi, Xiaoping & HEERINK, Nico & QU, Futian, 2011. "Does off-farm employment contribute to agriculture-based environmental pollution? New insights from a village-level analysis in Jiangxi Province, China," China Economic Review, Elsevier, vol. 22(4), pages 524-533.
    14. 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.
    15. Kleinwechter, Ulrich & Grethe, Harald, 2012. "Trade policy impacts under alternative land market regimes in rural China," China Economic Review, Elsevier, vol. 23(4), pages 1071-1089.
    16. Wang, Xiaxin & Shen, Yan, 2014. "The effect of China's agricultural tax abolition on rural families' incomes and production," China Economic Review, Elsevier, vol. 29(C), pages 185-199.
    17. 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).
    18. Tongwei Qiu & S. T. Boris Choy & Yifei Li & Biliang Luo & Jing Li, 2021. "Farmers' Exit from Land Operation in Rural China: Does the Price of Agricultural Mechanization Services Matter?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(2), pages 99-122, March.
    19. Qiu, Tongwei & Shi, Xinjie & He, Qinying & Luo, Biliang, 2021. "The paradox of developing agricultural mechanization services in China: Supporting or kicking out smallholder farmers?," China Economic Review, Elsevier, vol. 69(C).
    20. Zhao, Qianyu & Bao, Helen X.H. & Zhang, Zhanlu, 2021. "Off-farm employment and agricultural land use efficiency in China," Land Use Policy, Elsevier, vol. 101(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:15:y:2025:i:11:p:1151-:d:1665719. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.