Analysis on the establishment of natural reserves and the transfer of agricultural labor forces taking Jiangxi Province as an example

Purpose - The purpose of this study was to conduct a comprehensive analysis of the impact and its mechanism on the transfer of agricultural labor forces in the surrounding areas resulting from the establishment of a natural reserve, which holds great significance. The significance of this analysis is on the ecological protection of the natural reserve and the coordinated development of local social economy. Design/methodology/approach - This study first performs an analysis on the impact and its mechanism on the establishment of the natural reserve on the transfer of agricultural labor forces from two aspects, which are push and pull factors. Then, based on county panel data in Jiangxi Province from 1995 to 2012, this study builds a generalized difference-in-difference model and performs an empirical study on the impact, heterogeneity and its mechanism on the establishment of the natural reserve on the transfer of agricultural labor forces. Findings - The empirical analysis reveals that the establishment of natural reserves would significantly promote the transfer of agricultural labor forces to non-agricultural sectors. The robust test and placebo test with changed estimation methods verify the robust of the result. The result passes the parallel trend test and shows that the impact is most significant within one year after the implementation of the policy. From the mechanism analysis, the impact mainly comes from the “push” effect brought by the restricted development of agricultural production and primary industry on agricultural labor forces, and the “pull” effect brought by the development of local tertiary industry. Originality/value - The conclusion of this study enriches the understanding of the internal mechanism between the establishment of natural reserves and the transfer of agricultural labor forces from the push and pull factors, and can provide reference for formulating policies to promote the coordinated development of natural reserve construction and regional social economy.