The synergy effect of agricultural dual-scale management on farmers' income: evidence from rural China

Abstract

Purpose

This study aims to estimate the synergy effect of agricultural dual-scale management (ADM) on farmers' total household income, its heterogeneous effects and its mechanisms.

Design/methodology/approach

This study constructs a theoretical analysis framework based on the division of labor and synergy theory, empirically assesses the impact of ADM on farmers' income, and further discusses the heterogeneity and mechanisms using the propensity score matching (PSM) and quantile treatment effect (QTE) models. Data is collected from 1,076 households across 4 cities in Liaoning Province of China in 2021.

Findings

ADM can improve the total household income of farmers, and the impact force is greater than that of the single-scale management mode. ADM is more conducive to improving the income of farmers with low income and low labor endowment. Moreover, ADM can improve agriculture production efficiency, increase net grain production income. Nevertheless, it has no significant effect on farmers' off-farm employment income.

Originality/value

Previous studies have mainly focused on the income effect of land scale management or service scale management. To the best of our knowledge, this study is the first to identify the synergy effect of ADM on farmers' income in China. It provides new insights into the process of agricultural production and management mode transitions in rural China.

Citation

Yin, G., Xu, X., Piao, H. and Lyu, J. (2024), "The synergy effect of agricultural dual-scale management on farmers' income: evidence from rural China", China Agricultural Economic Review, Vol. 16 No. 3, pp. 591-607. https://doi.org/10.1108/CAER-01-2023-0005