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Does outsourcing affect agricultural productivity of farmer households? Evidence from China

Xin Deng (College of Economics, Sichuan Agricultural University, Chengdu, China)
Dingde Xu (Sichuan Center for Rural Development Research, College of Management, Sichuan Agricultural University, Chengdu, China)
Miao Zeng (School of Economics, Sichuan University, Chengdu, China)
Yanbin Qi (College of Economics, Sichuan Agricultural University, Chengdu, China)

China Agricultural Economic Review

ISSN: 1756-137X

Article publication date: 13 August 2020

Issue publication date: 22 September 2020

829

Abstract

Purpose

Previous studies focused on the influence of outsourcing (labor division) on productivity, especially in the industrial economy. However, few studies have focused on how labor division in agriculture affects agricultural productivity. To bridge this gap, this study uses survey data from 4864 farmer households in China to explore the impacts of outsourcing on agricultural productivity.

Design/methodology/approach

This study employs an endogenous switching regression to account for selection bias and a counterfactual framework to measure the degree of influence. Thus, this study analyzes determinants of outsourcing and the impacts of outsourcing on agricultural productivity under the same framework.

Findings

The results revealed the following. (1) Farmer households with the below average productivity tended to outsource; conversely, farmer households with the above average productivity tended to cultivate the land by themselves. (2) Productivity increased by 25.61% for farmer households who choose to outsource. Moreover, if nonoutsourcing farmer households would choose to outsource, their productivity would increase by 10.86%.

Originality/value

This study furthers one’s understanding of how outsourcing affects agricultural productivity among farmer households.

Keywords

Acknowledgements

Funding: The National Social Science Foundation of China (Grant No. 14XGL003) funded this study.All authors gratefully acknowledge the support from the National Social Science Foundation of China (Grant No. 14XGL003). We also extend great gratitude to the anonymous reviewers and editors for their helpful review and critical comments. Additionally, all authors are very grateful to the Center for Social Science Survey at Sun Yat-sen University who provides the data. And especially, Deng want to ask Zeng a question: Will you marry me?

Citation

Deng, X., Xu, D., Zeng, M. and Qi, Y. (2020), "Does outsourcing affect agricultural productivity of farmer households? Evidence from China", China Agricultural Economic Review, Vol. 12 No. 4, pp. 673-688. https://doi.org/10.1108/CAER-12-2018-0236

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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