IDEAS home Printed from https://ideas.repec.org/h/fpr/ifpric/9780896293809_02.html
   My bibliography  Save this book chapter

Mechanization outsourcing clusters and division of labor in Chinese agriculture

In: An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?

Author

Listed:
  • Zhang, Xiaobo
  • Yang, Jin
  • Reardon, Thomas

Abstract

Despite small landholdings, a high degree of land fragmentation, and rising labor costs, agricultural production in China has steadily increased. If one treats the farm household as the unit of analysis, it is difficult to explain the conundrum. When seeing agricultural production through the lens of the division of labor, the puzzle can be easily solved. In response to rising labor costs, farmers outsource some power-intensive stages of production, such as harvesting, to specialized mechanization service providers, which are often clustered in a few counties and travel throughout the country to provide harvesting services at competitive prices. Through such an arrangement, smallholder farmers can stay viable in agricultural production.

Suggested Citation

  • Zhang, Xiaobo & Yang, Jin & Reardon, Thomas, 2020. "Mechanization outsourcing clusters and division of labor in Chinese agriculture," IFPRI book chapters, in: An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?, chapter 2, pages 71-96, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifpric:9780896293809_02
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/10568/142768
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Zhang, Xiaobo & Yang, Jin & Wang, Shenglin, 2011. "China has reached the Lewis turning point," China Economic Review, Elsevier, vol. 22(4), pages 542-554.
    2. Deininger, Klaus & Jin, Songqing, 2009. "Securing property rights in transition: Lessons from implementation of China's rural land contracting law," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 22-38, May.
    3. Irene Brambilla & Guido G. Porto, 2005. "Farm Productivity and Market Structure. Evidence From Cotton Reforms in Zambia," Working Papers 919, Economic Growth Center, Yale University.
    4. Irene Brambilla & Guido G. Porto, 2011. "Market structure, outgrower contracts, and farm output. Evidence from cotton reforms in Zambia," Oxford Economic Papers, Oxford University Press, vol. 63(4), pages 740-766, December.
    5. Coase Ronald H & Wang Ning, 2011. "The Industrial Structure of Production: A Research Agenda for Innovation in an Entrepreneurial Economy," Entrepreneurship Research Journal, De Gruyter, vol. 1(2), pages 1-13, March.
    6. Kazushi Takahashi & Keijiro Otsuka, 2009. "The increasing importance of nonfarm income and the changing use of labor and capital in rice farming: the case of Central Luzon, 1979–2003," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 231-242, March.
    7. Jayasuriya, S. K. & Shand, R. T., 1986. "Technical change and labor absorption in Asian agriculture: Some emerging trends," World Development, Elsevier, vol. 14(3), pages 415-428, March.
    8. Binswanger, Hans, 1986. "Agricultural Mechanization: A Comparative Historical Perspective," The World Bank Research Observer, World Bank, vol. 1(1), pages 27-56, January.
    9. Prabhu L. Pingali, 1997. "From Subsistence to Commercial Production Systems: The Transformation of Asian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 628-634.
    10. 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.
    11. Aboagye, Patrick & Cossar, Frances & Diao, Xinshen & Houssou, Nazaire & Jimah, Kipo & Kolavalli, Shashidhara, 2012. "Mechanization in Ghana: Searching for sustainable service supply models:," IFPRI discussion papers 1237, International Food Policy Research Institute (IFPRI).
    12. Otsuka, Keijiro, 2012. "Presidential Address at 27th International Conference of Agricultural Economists, Foz do Iguaçu, Brazil : Food Insecurity, Income Inequality, and the Changing Comparative Advantage in World Agricultur," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 127068, International Association of Agricultural Economists.
    13. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    14. Olmstead, Alan L. & Rhode, Paul W., 1995. "Beyond the Threshold: An Analysis of the Characteristics and Behavior of Early Reaper Adopters," The Journal of Economic History, Cambridge University Press, vol. 55(1), pages 27-57, March.
    15. Pingali, Prabhu, 2007. "Agricultural Mechanization: Adoption Patterns and Economic Impact," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 54, pages 2779-2805, Elsevier.
    16. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59(3), pages 185-185.
    17. Peter Timmer, C., 1988. "The agricultural transformation," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 8, pages 275-331, Elsevier.
    18. Robert Evenson & Prabhu Pingali (ed.), 2007. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 3, number 1.
    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. Adu-Baffour, Ferdinand & Daum, Thomas & Birner, Regina, 2019. "Can small farms benefit from big companies’ initiatives to promote mechanization in Africa? A case study from Zambia," Food Policy, Elsevier, vol. 84(C), pages 133-145.
    2. Idelphonse O. Saliou & Afio Zannou & Augustin K. N. Aoudji & Albert N. Honlonkou, 2020. "Drivers of Mechanization in Cotton Production in Benin, West Africa," Agriculture, MDPI, vol. 10(11), pages 1-13, November.
    3. Thomas Daum & Regina Birner, 2017. "The neglected governance challenges of agricultural mechanisation in Africa – insights from Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 959-979, October.
    4. 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.
    5. Takeshima, Hiroyuki & Houssou, Nazaire & Diao, Xinshen, 2018. "Effects of tractor ownership on returns-to-scale in agriculture: Evidence from maize in Ghana," Food Policy, Elsevier, vol. 77(C), pages 33-49.
    6. Paudel, Gokul P. & KC, Dilli Bahadur & Rahut, Dil Bahadur & Justice, Scott E. & McDonald, Andrew J., 2019. "Scale-appropriate mechanization impacts on productivity among smallholders: Evidence from rice systems in the mid-hills of Nepal," Land Use Policy, Elsevier, vol. 85(C), pages 104-113.
    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. Fangbin Qiao, 2020. "The Impact of Agricultural Service on Grain Production in China," Sustainability, MDPI, vol. 12(15), pages 1-18, August.
    9. Belton, Ben & Win, Myat Thida & Zhang, Xiaobo & Filipski, Mateusz, 2021. "The rapid rise of agricultural mechanization in Myanmar," Food Policy, Elsevier, vol. 101(C).
    10. Adu-Baffour, Ferdinand & Daum, Thomas & Birner, Regina, 2018. "Can Big Companies’ Initiatives to Promote Mechanization Benefit Small Farms in Africa? A Case Study from Zambia," Discussion Papers 273521, University of Bonn, Center for Development Research (ZEF).
    11. Kubitza, Christoph & Dib, Jonida Bou & Kopp, Thomas & Krishna, Vijesh V. & Nuryartono, Nunung & Qaim, Matin & Romero, Miriam & Klasen, Stephan, 2019. "Labor savings in agriculture and inequality at different spatial scales: The expansion of oil palm in Indonesia," EFForTS Discussion Paper Series 26, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    12. Rob Vos, 2018. "Agricultural and rural transformations in Asian development," WIDER Working Paper Series 87, World Institute for Development Economic Research (UNU-WIDER).
    13. Yukichi Y. & Mano Yukichi Y. & Takahashi Kazushi & Otsuka Keijiro, 2017. "Contract Farming, Farm Mechanization, and Agricultural Intensification: The Case of Rice Farming in Cote d’Ivoire," Working Papers 157, JICA Research Institute.
    14. Afridi, Farzana & Bishnu, Monisankar & Mahajan, Kanika, 2020. "Gendering Technological Change: Evidence from Agricultural Mechanization," IZA Discussion Papers 13712, Institute of Labor Economics (IZA).
    15. Daum, Thomas & Villalba, Roberto & Anidi, Oluwakayode & Mayienga, Sharon Masakhwe & Gupta, Saurabh & Birner, Regina, 2021. "Uber for tractors? Opportunities and challenges of digital tools for tractor hire in India and Nigeria," World Development, Elsevier, vol. 144(C).
    16. Kirui, Oliver K. & von Braun, Joachim, 2018. "Mechanization in African Agriculture: A Continental Overview on Patterns and Dynamics," Working Papers 273522, University of Bonn, Center for Development Research (ZEF).
    17. Hiroyuki Takeshima, 2024. "Agricultural mechanisation and gendered labour activities across sectors: Micro‐evidence from multi‐country farm household data," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 425-456, February.
    18. Takeshima, Hiroyuki & Liu, Yanyan, 2020. "Smallholder mechanization induced by yield-enhancing biological technologies: Evidence from Nepal and Ghana," Agricultural Systems, Elsevier, vol. 184(C).
    19. Rob Vos, 2018. "Agricultural and rural transformations in Asian development," WIDER Working Paper Series wp-2018-87, World Institute for Development Economic Research (UNU-WIDER).
    20. Takeshima, Hiroyuki, 2015. "Market imperfections for tractor service provision in Nigeria: International perspectives and empirical evidence," IFPRI discussion papers 1424, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    agricultural production; fertilizers; supply balance; policies; surveys; technology; farmers; labour; agriculture; harvesters; smallholders; farm equipment; harvesting; agricultural mechanization; pesticides; remuneration; rural areas; governance; China; Asia; Eastern Asia;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    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:fpr:ifpric:9780896293809_02. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    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.