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Farm machinery use, off-farm employment and farm performance in China

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  • Ma, Wanglin
  • Renwick, Alan
  • Grafton, Quentin
Abstract
We analyse the joint impacts of farm machinery use and off-farm employment on maize yields and agrochemical expenses from a household survey of 493 farmers in China. Our findings are obtained from an innovative two-stage econometric procedure that combines a bivariate ordered probit model with an endogeneity-corrected ordinary least square regression model. The results show that farmers are jointly making decisions to use farm machines and to work off the farm and that these two household activities affect maize yields and agrochemical expenses in different ways. We show that farm machinery use significantly increases both maize yields and agrochemical expenses, while off-farm employment significantly decreases agrochemical expenses. Our findings highlight the importance of additional machinery use in increasing farm production; the need to account for possible endogeneity in estimation; and the statistical significance of key household characteristics (gender, education, and household size) on overall farm production.

Suggested Citation

  • Ma, Wanglin & Renwick, Alan & Grafton, Quentin, 2018. "Farm machinery use, off-farm employment and farm performance in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(2), April.
    • Handle: RePEc:ags:aareaj:313584
    DOI: 10.22004/ag.econ.313584
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    Cited by:

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    6. Zhou, Xiaoshi & Ma, Wanglin, 2021. "Effects of Agricultural Mechanization on Land Productivity: Evidence from China," 2021 Conference, August 17-31, 2021, Virtual 315143, International Association of Agricultural Economists.
    7. Jing Zhang & Jianhua Wang & Xiaoshi Zhou, 2019. "Farm Machine Use and Pesticide Expenditure in Maize Production: Health and Environment Implications," IJERPH, MDPI, vol. 16(10), pages 1-13, May.
    8. Qian, Long & Lu, Hua & Gao, Qiang & Lu, Hualiang, 2022. "Household-owned farm machinery vs. outsourced machinery services: The impact of agricultural mechanization on the land leasing behavior of relatively large-scale farmers in China," Land Use Policy, Elsevier, vol. 115(C).
    9. Kun Song & Yu Tang & Dungang Zang & Hua Guo & Wenting Kong, 2022. "Does Digital Finance Increase Relatively Large-Scale Farmers’ Agricultural Income through the Allocation of Production Factors? Evidence from China," Agriculture, MDPI, vol. 12(11), pages 1-15, November.
    10. Zheng, Linyi, 2023. "Impact of off-farm employment on cooking fuel choices: Implications for rural-urban transformation in advancing sustainable energy transformation," Energy Economics, Elsevier, vol. 118(C).
    11. Zhongkun Zhu & Wanglin Ma & Chenxin Leng, 2022. "ICT Adoption, Individual Income and Psychological Health of Rural Farmers in China," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(1), pages 71-91, February.
    12. Zou, Baoling & Mishra, Ashok K., 2024. "Modernizing Smallholder Agriculture and Achieving Food Security: An Exploration in Machinery Services and Labor Reallocation in China," IZA Discussion Papers 17008, Institute of Labor Economics (IZA).
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    15. Xiuhao Quan & Reiner Doluschitz, 2021. "Factors Influencing the Adoption of Agricultural Machinery by Chinese Maize Farmers," Agriculture, MDPI, vol. 11(11), pages 1-11, November.
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    17. Jin Liu & Yufeng Lu & Qing Xu & Qing Yang, 2019. "Public Health Insurance, Non-Farm Labor Supply, and Farmers’ Income: Evidence from New Rural Cooperative Medical Scheme," IJERPH, MDPI, vol. 16(23), pages 1-15, December.
    18. repec:ags:aaea22:335478 is not listed on IDEAS
    19. Ma, Wanglin & Zhou, Xiaoshi & Boansi, David & Horlu, Godwin Seyram Agbemavor & Owusu, Victor, 2024. "Adoption and intensity of agricultural mechanization and their impact on non-farm employment of rural women," World Development, Elsevier, vol. 173(C).
    20. Lili Chen & Jiquan Peng & Yibei Zhang, 2022. "Research on the Impact of Rural Land Transfer on Non-Farm Employment of Farm Households: Evidence from Hubei Province, China," IJERPH, MDPI, vol. 19(23), pages 1-19, November.
    21. Lijing Dong & Yingjie Li & Zhenya Sun & Lingyu Zhang & Haiyun Tang, 2024. "Farmers’ Non-Agricultural Income, Agricultural Technological Progress, and Sustainable Food Supply Security: Insights from China," Sustainability, MDPI, vol. 16(18), pages 1-22, September.
    22. Xin Deng & Miao Zeng & Dingde Xu & Yanbin Qi, 2022. "Why do landslides impact farmland abandonment? Evidence from hilly and mountainous areas of rural China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 113(1), pages 699-718, August.
    23. Lin, Bin & Wang, Xiaoxi & Jin, Songqing & Yang, Wanjiang & Li, Houjian, 2022. "Impacts of cooperative membership on rice productivity: Evidence from China," World Development, Elsevier, vol. 150(C).
    24. Xiang Li & Xiaoqin Guo, 2023. "Can Policy Promote Agricultural Service Outsourcing? Quasi-Natural Experimental Evidence from China," Sustainability, MDPI, vol. 15(2), pages 1-18, January.
    25. Zou, Baoling & Chen, Yudan & Mishra, Ashok K. & Hirsch, Stefan, 2024. "Agricultural mechanization and the performance of the local Chinese economy," Food Policy, Elsevier, vol. 125(C).

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