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How Rural-Urban Migration Shapes Agricultural Innovation and Productivity

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  • Chen, Luoye
  • Hou, Yun
  • Xiong, Xueshan

Abstract

We empirically investigate the impact of migration flows induced by the hukou reform on agricultural innovation in terms of quantity and quality. Utilizing the 2014 hukou reform in China as a policy shock, we observe a 23.1% decrease in agricultural patent counts, with no significant effect on disruptiveness. This decline is primarily concentrated in urban areas and is reflected in a reduction in the extensive margin, specifically the number of active innovators. The decrease can be attributed to two interrelated mechanisms: the loss of skilled agricultural workers who possess critical tacit knowledge and a diminished entry of agribusiness due to resource reallocation. The findings highlight the unintended consequences of institutional policies, suggesting that urbanization initiatives may inadvertently impede agricultural technological progress when human capital externalities are insufficiently addressed.

Suggested Citation

  • Chen, Luoye & Hou, Yun & Xiong, Xueshan, 2025. "How Rural-Urban Migration Shapes Agricultural Innovation and Productivity," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361180, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:361180
    DOI: 10.22004/ag.econ.361180
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