Machinery Investment Decision and Off-Farm Employment in Rural China
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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.