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Mechanization services, farm productivity and institutional innovation in China

Yi Qing (Center for Chinese Agricultural Policy, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing, China) (University of Chinese Academy of Sciences, Beijing, China)
Moyu Chen (China Center for Agricultural Policy, School of Advanced Agricultural Sciences, Peking University, Beijing, China)
Yu Sheng (China Center for Agricultural Policy, School of Advanced Agricultural Sciences, Peking University, Beijing, China)
Jikun Huang (China Center for Agricultural Policy, School of Advanced Agricultural Sciences, Peking University, Beijing, China) (School of Economics and Management, Jiangxi Agricultural University, Nanchang, 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

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Emerald Publishing Limited

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