Wage Growth, Landholding, and Mechanization in Chinese Agriculture
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World Bank Group, Washington, DC
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This paper uses farm panel data from
China to examine the dynamics of land transactions, machine
investments, and the demand for machine services. Recently,
China's agriculture has experienced a large expansion
of machine rentals and machine services provided by
specialized agents, which has contributed to mechanization
of agricultural production. The empirical results show that
an increase in nonagricultural wage rates leads to expansion
of self-cultivated land size. A rise in the proportion of
nonagricultural income or the migration rate also increases
the size of self-cultivated land. Interestingly, however,
relatively educated farm households decrease the size of
self-cultivated land, which suggests that relatively less
educated farmers tend to specialize in farming. The demand
for machine services has also increased if agricultural wage
and migration rate increased over time, especially among
relatively large farms. The results on crop income support
the complementarity between rented-in land and machine
services (demanded), which implies that scale economies are
arising in Chinese agriculture with mechanization and active
land rental markets.
Palabras clave
AGRARIAN STRUCTURE, AGRICULTURAL ACTIVITIES, AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL EMPLOYMENT, AGRICULTURAL GROWTH, AGRICULTURAL INCOMES, AGRICULTURAL LAND, AGRICULTURAL POLICY, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTS, AGRICULTURAL REGIONS, AGRICULTURAL SECTORS, AGRICULTURAL WAGE, AGRICULTURAL WAGES, AGRICULTURE, ANNUAL GROWTH, AVERAGE ANNUAL GROWTH, CAPITAL-LABOR, CROP INCOME, CROP PRODUCTION, CROP YIELD, CROPS, CULTIVATED AREAS, CULTIVATED LAND, CULTIVATION, DAILY WAGE, DEVELOPMENT ECONOMICS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC TRANSFORMATION, ECONOMICS, EMPLOYMENT, EMPLOYMENT OPPORTUNITIES, FAMILY LABOR, FAMILY MEMBERS, FARM AREA, FARM EFFICIENCY, FARM EMPLOYMENT, FARM EMPLOYMENT OPPORTUNITIES, FARM HOUSEHOLDS, FARM LABOR, FARM PRODUCTIVITY, FARM SIZE, FARM TECHNOLOGY, FARM WORK, FARM WORKERS, FARMERS, FARMING ACTIVITIES, FARMLAND, FARMS, FOOD INSECURITY, GROWTH RATE, GROWTH RATES, HUMAN CAPITAL, INCOME, INCOME GROWTH, INCOME INEQUALITY, INCOMES, INNOVATIONS, IRRIGATION, LABOR ALLOCATION, LABOR COSTS, LABOR DEMAND, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR MIGRATION, LABOR SHORTAGE, LABOR SUPPLY, LABOR USE, LABORERS, LABOUR, LABOUR MARKETS, LAND CONSOLIDATION, LAND DISTRIBUTION, LAND MANAGEMENT, LAND MARKETS, LAND OWNERSHIP, LAND REGISTRATION, LAND RENT, LAND RENTAL, LAND RIGHTS, LAND SALES, LAND SIZE, LAND USE, MAJORITY OF FARMERS, MARGINAL VALUE, PLOUGHING, POLITICAL ECONOMY, PRODUCTIVITY, PROPERTY RIGHTS, REAL WAGE, REAL WAGES, REGIONAL VARIATIONS, RELATIVE PRICES, RESOURCE ALLOCATION, RURAL AREAS, RURAL DEVELOPMENT, RURAL HOUSEHOLDS, RURAL LABOR, RURAL POPULATION, RURAL POVERTY, RURAL RESIDENTS, RURAL SECTORS, SCHOOLING, SMALL FARMERS, SMALL FARMS, SMALL-SCALE FARMING, STRUCTURAL TRANSFORMATION, SUPPLIERS, TECHNICAL CHANGE, TECHNICAL EFFICIENCY, TECHNOLOGICAL INNOVATION, TECHNOLOGICAL PROGRESS, UNSKILLED LABOR, URBAN MIGRATION, URBANIZATION, VILLAGE LEADERS, VILLAGE LEVEL, WAGE GROWTH, WAGE INCREASES, WAGE RATES, WORKING DAYS