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The Impact of Nonfarm Activities on Agricultural Productivity in Rural China

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  • Wang, Ye
  • Wang, Chenggang
  • Pan, Suwen

Abstract

Although evidence abounds that the development of rural non-farm activities have increased rural household income and contributed to rural development, the underlying structure and mechanism of the linkage between agricultural productivity and non-farm activities is poorly understood. Using a unique panel dataset of Chinese villages, this article examines the mechanism by which non-farm activities influence agricultural productivity. I find that Chinese villages’ non-farm revenue has a significant positive effect on agricultural land productivity. Although non-farm activities do withdraw labor out of agriculture and therefore dampen land productivity, that negative effect is negligible in comparison with the land productivity improvement brought by nonfarm revenue-financed infrastructure capital investment.

Suggested Citation

  • Wang, Ye & Wang, Chenggang & Pan, Suwen, 2011. "The Impact of Nonfarm Activities on Agricultural Productivity in Rural China," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103605, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103605
    DOI: 10.22004/ag.econ.103605
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    References listed on IDEAS

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    1. Alan de Brauw & John Giles, 2018. "Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China," The World Bank Economic Review, World Bank, vol. 32(1), pages 1-18.
    2. de Janvry, Alain & Sadoulet, Elisabeth & Zhu, Nong, 2005. "The Role of Non-Farm Incomes in Reducing Rural Poverty and Inequality in China," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7ts2z766, Department of Agricultural & Resource Economics, UC Berkeley.
    3. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
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    Cited by:

    1. Ang lique Neema Ciza & Rhys Manners & Marc Schut & Stany Vwima Ngezirabona & Philippe Lebailly, 2021. "Explanatory Factors for Farm Income Diversity in Kalehe District, South Kivu Province, DR Congo," International Journal of Economics and Financial Issues, Econjournals, vol. 11(2), pages 19-27.
    2. Benjamin Tetteh Anang, 2017. "Effect of non-farm work on agricultural productivity: Empirical evidence from northern Ghana," WIDER Working Paper Series wp-2017-38, World Institute for Development Economic Research (UNU-WIDER).
    3. repec:fpr:export:1338 is not listed on IDEAS
    4. Jin Yang & Hui Wang & Songqing Jin & Kevin Chen & Jeffrey Riedinger & Chao Peng, 2016. "Migration, local off-farm employment, and agricultural production efficiency: evidence from China," Journal of Productivity Analysis, Springer, vol. 45(3), pages 247-259, June.
    5. Mondal, Ripon Kumar & Selvanathan, Eliyathamby A & Selvanathan, Saroja, 2020. "The impact of rural nonfarm employment on agricultural input use and productivity in Bangladesh," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305251, Australian Agricultural and Resource Economics Society.
    6. Yang, Jin & Wan, Qian & Bi, Wu, 2020. "Off-farm employment and grain production change: New evidence from China," China Economic Review, Elsevier, vol. 63(C).
    7. Kehinde, Ayodeji Damilola, 2021. "The Distributional Impact of Non-Farm Income on Output and Farm Income of Cassava Farmers in Southwestern Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315857, International Association of Agricultural Economists.
    8. Benjamin Tetteh Anang, 2017. "Effect of non-farm work on agricultural productivity: Empirical evidence from northern Ghana," WIDER Working Paper Series 038, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    Agricultural and Food Policy; Productivity Analysis;

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