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Estimating the Effect of Land Fragmentation on Machinery Use and Crop Production

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  • Lai, Wangyang
  • Roe, Brian
  • Liu, Yumei

Abstract

Using a recent data set from farm households in the provinces of Hebei and Shandong, we investigate the effect of land fragmentation on machinery use as well as the effect of machinery use on crop production. Endogeneity is addressed by utilizing land fragmentation due to previous long-term land assignment as an instrument and first difference estimation between normalized wheat and corn output from the same plots in the same year. The main results indicate that consolidating an average farm of 0.31 hectares from 2.28 plots to one plot increases machinery use by about 10%. Further, a 10% increase of machinery use increases crop production between 0.5% and 1%.

Suggested Citation

  • Lai, Wangyang & Roe, Brian & Liu, Yumei, 2015. "Estimating the Effect of Land Fragmentation on Machinery Use and Crop Production," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205280, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205280
    DOI: 10.22004/ag.econ.205280
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    References listed on IDEAS

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    6. Rao, Xudong, 2014. "Land Fragmentation with Double Bonuses -- The Case of Tanzanian Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169436, Agricultural and Applied Economics Association.
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    Cited by:

    1. Xiaoshi Zhou & Wanglin Ma & Gucheng Li & Huanguang Qiu, 2020. "Farm machinery use and maize yields in China: an analysis accounting for selection bias and heterogeneity," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1282-1307, October.
    2. Nguyen, Huy Quynh & Warr, Peter, 2020. "Land consolidation as technical change: Economic impacts in rural Vietnam," World Development, Elsevier, vol. 127(C).
    3. Ma, Wanglin & Renwick, Alan & Grafton, Quentin, 2018. "Farm machinery use, off-farm employment and farm performance in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(2), April.
    4. Xiuhao Quan & Reiner Doluschitz, 2021. "Factors Influencing the Adoption of Agricultural Machinery by Chinese Maize Farmers," Agriculture, MDPI, vol. 11(11), pages 1-11, November.
    5. Huy Quynh Nguyen & Peter Warr, 2018. "Land consolidation as technical change: impacts on-farm and off-farm in rural Vietnam," Departmental Working Papers 2018-25, The Australian National University, Arndt-Corden Department of Economics.

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    Keywords

    Crop Production/Industries; Land Economics/Use; Production Economics;
    All these keywords.

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