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Mechanization services, farm productivity and institutional innovation in China

Mechanization services, farm productivity and institutional innovation in China The purpose of this paper is to investigate the impact of mechanization services on farm productivity in Northern China from an empirical perspective, with the aim to identify the underlying market and institutional barriers.Design/methodology/approachThe authors apply the regression method with the control of village fixed effects to examining the relationship between capital–labor ratio, mechanization service ratio and farm productivity, using the panel data collected in 2013 and 2015 by CCAP.FindingsMechanization services improve farm productivity through substituting labor, but it may generate a less positive impact on farms who do not have self-owned capital equipment.Originality/valueIt is the first study to investigate how mechanization services affect farm productivity for grain producers in Northern China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Mechanization services, farm productivity and institutional innovation in China

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1756-137X
DOI
10.1108/caer-12-2018-0244
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to investigate the impact of mechanization services on farm productivity in Northern China from an empirical perspective, with the aim to identify the underlying market and institutional barriers.Design/methodology/approachThe authors apply the regression method with the control of village fixed effects to examining the relationship between capital–labor ratio, mechanization service ratio and farm productivity, using the panel data collected in 2013 and 2015 by CCAP.FindingsMechanization services improve farm productivity through substituting labor, but it may generate a less positive impact on farms who do not have self-owned capital equipment.Originality/valueIt is the first study to investigate how mechanization services affect farm productivity for grain producers in Northern China.

Journal

China Agricultural Economic Review – Emerald Publishing

Published: Sep 18, 2019

Keywords: Total factor productivity; Farm survey; Mechanization service; Small household farms

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