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Machinery Investment Decision and Off-Farm Employment in Rural China

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  • Ji, Yueqing
  • Zhong, Funing
  • Yu, Xiaohua

Abstract

This paper investigates the linkages between farmers’ machinery investment decision and off-farm employment in China. Both the theoretical model and the empirical results based on a survey of 453 households in Anhui Province indicate that agricultural labor input and small-size machinery investment are gross complements rather than substitutes when machinery service is available in the market. Consequently, farmers with small machinery are more likely to reduce their off-time employment time.

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Handle: RePEc:ags:iamo11:115515
DOI: 10.22004/ag.econ.115515
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File URL: https://ageconsearch.umn.edu/record/115515/files/Ji_Zhong_Yu_IAMO_Forum_2011.pdf
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