Mechanization services, farm productivity and institutional innovation in China
China Agricultural Economic Review
ISSN: 1756-137X
Article publication date: 13 June 2019
Issue publication date: 18 September 2019
Abstract
Purpose
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/approach
The 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.
Findings
Mechanization 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/value
It is the first study to investigate how mechanization services affect farm productivity for grain producers in Northern China.
Keywords
Acknowledgements
The authors acknowledge the financial supports from State Natural Sciences Foundation (No. 71873005); State Natural Sciences Foundation (No. 71742002); ATMAC (43643) Chinese Academy of Engineering (2018-ZD-07-1); Chinese Academy of Engineering (2018-ZD-07-06-1) and the financial support from Data Centre for Management Science, PKU-NSFC (2018KEY06). All errors belong to authors.
Citation
Qing, Y., Chen, M., Sheng, Y. and Huang, J. (2019), "Mechanization services, farm productivity and institutional innovation in China", China Agricultural Economic Review, Vol. 11 No. 3, pp. 536-554. https://doi.org/10.1108/CAER-12-2018-0244
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited