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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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    References listed on IDEAS

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    Cited by:

    1. Wang, Xiaobing & Yamauchi, Futoshi & Otsuka, Keijiro & Huang, Jikun, 2016. "Wage Growth, Landholding, and Mechanization in Chinese Agriculture," World Development, Elsevier, vol. 86(C), pages 30-45.
    2. Linxiu Zhang & Weiliang Su & Tor Eriksson & Chengfang Liu, 2016. "How Off-farm Employment Affects Technical Efficiency of China's Farms: The Case of Jiangsu," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(3), pages 37-51, May.
    3. Zhao, Qiran & Yu, Xiaohua & Wang, Xiaobing & Glauben, Thomas, 2014. "The impact of parental migration on children's school performance in rural China," China Economic Review, Elsevier, vol. 31(C), pages 43-54.
    4. Huang, Jikun & Wang, Xiaobing & Rozelle, Scott, 2013. "The subsidization of farming households in China’s agriculture," Food Policy, Elsevier, vol. 41(C), pages 124-132.
    5. Ito, Junichi & Ni, Jing, 2013. "Capital deepening, land use policy, and self-sufficiency in China's grain sector," China Economic Review, Elsevier, vol. 24(C), pages 95-107.
    6. Xiaobing Wang & Futoshi Yamauchi & Jikun Huang, 2016. "Rising wages, mechanization, and the substitution between capital and labor: evidence from small scale farm system in China," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 309-317, May.
    7. Marconi, V. & Raggi, M. & Viaggi, D. & Lefebvre, M. & Gomez y Paloma, Sergio, 2015. "The impact of the 2013 Common Agricultural Policy reform on farmer's investment decisions: an ex-ante evaluation," 2015 Conference, August 9-14, 2015, Milan, Italy 212225, International Association of Agricultural Economists.
    8. Su, Weiliang & Eriksson, Tor & Zhang, Linxiu & Bai, Yunli, 2016. "Off-farm employment and time allocation in on-farm work in rural China from gender perspective," China Economic Review, Elsevier, vol. 41(C), pages 34-45.
    9. Yumei Liu & Wuyang Hu & Simon Jetté-Nantel & Zhihong Tian, 2014. "The Influence of Labor Price Change on Agricultural Machinery Usage in Chinese Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 219-243, June.

    More about this item

    Keywords

    Small-size Machinery; Off-Farm employment; Complements; China;

    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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