The Impact of Nonfarm Activities on Agricultural Productivity in Rural China
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.
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- de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
- de Brauw, Alan & Giles, John T., 2012.
"Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China,"
IZA Discussion Papers
6765, Institute for the Study of Labor (IZA).
- de Brauw, Alan & Giles, John, 2008. "Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6085, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- de Brauw, Alan & Giles, John, 2008. "Migrant labor markets and the welfare of rural households in the developing world : evidence from China," Policy Research Working Paper Series 4585, The World Bank.
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