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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 rahter tha substitutes when machinery service is available in the market. Consequently, farmers with small machinery are more likely to reduce their off-time employment time.

Suggested Citation

  • Ji, Yueqing & Zhong, Funing & Yu, Xiaohua, 2011. "Machinery investment decision and off-farm employment in rural China," IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth 5, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    • Handle: RePEc:zbw:iamo11:5
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    More about this item

    Keywords

    Small-size Machinery; Off-Farm employment; Complements; China;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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