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Machinery investment decision and off-farm employment in rural China

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

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.

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File URL: http://econstor.eu/bitstream/10419/50795/1/670769126.pdf
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Paper provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth with number 5.

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Date of creation: 2011
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Handle: RePEc:zbw:iamo11:5
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  7. Justin Yifu Lin, 1990. "Collectivization and China's Agricultural Crisis in 1959-1961," UCLA Economics Working Papers 579, UCLA Department of Economics.
  8. Feder, Gershon & Lau, Lawrence J. & Lin, Justin & Luo Xiaopeng, 1990. "The determinants of farm investment and residential construction in post-reform China," Policy Research Working Paper Series 471, The World Bank.
  9. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution of China's Rural Labor Markets During the Reforms," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 329-353, June.
  10. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  11. Xiaohua Yu & Guoqing Zhao, 2009. "Chinese agricultural development in 30 years: A literature review," Frontiers of Economics in China, Springer, vol. 4(4), pages 633-648, December.
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  14. Carl J. Lagerkvist & Karin Larsen & Kent D. Olson, 2007. "Off-farm income and farm capital accumulation: a farm-level analysis," Agricultural Finance Review, Emerald Group Publishing, vol. 67(2), pages 241-257, September.
  15. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  16. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
  17. Liu, Yunhua & Wang, Xiaobing, 2005. "Technological progress and Chinese agricultural growth in the 1990s," China Economic Review, Elsevier, vol. 16(4), pages 419-440.
  18. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
  19. YU Xiaohua & ZHAO Guoqing, 2009. "Chinese agricultural development in 30 years: A literature review," Frontiers of Economics in China, Higher Education Press, vol. 4(4), pages 633-648, December.
  20. Ahituv, Avner & Kimhi, Ayal, 2002. "Off-farm work and capital accumulation decisions of farmers over the life-cycle: the role of heterogeneity and state dependence," Journal of Development Economics, Elsevier, vol. 68(2), pages 329-353, August.
  21. Zhao, Yaohui, 2002. "Causes and Consequences of Return Migration: Recent Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 376-394, June.
  22. Kada, Ryohei, 1992. "Capital Formation of the Farm Household and Resource Allocation in Agricultural-Rural Sectors: An Analysis of Sustainability of Japanese Agriculture," 1991 Conference, August 22-29, 1991, Tokyo, Japan 183346, International Association of Agricultural Economists.
  23. Adams, Richard H., 2001. "Nonfarm income, inequality, and poverty in rural Egypt and Jordan," Policy Research Working Paper Series 2572, The World Bank.
  24. Rosenzweig, Mark R, 1980. "Neoclassical Theory and the Optimizing Peasant: An Econometric Analysis of Market Family Labor Supply in a Developing Country," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 31-55, February.
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