IDEAS home Printed from https://ideas.repec.org/a/ags/reowae/338490.html
   My bibliography  Save this article

Does Informatization Cause the Relative Substitution Bias of Agricultural Machinery Inputs for Labor Inputs? Evidence from Apple Farmers in China

Author

Listed:
  • Zhang, Congying
  • Xiang, Jingru
  • Chang, Qian

Abstract

The change of information scenario may change the market transaction cost of different factors, thus changing the relative price of factors and inducing the substitution of production factors, but there is no research to prove this. Therefore, this study takes labor-saving technology (mechanical substitution of labor) as an example, evaluates informatization from three aspects of information technology access, information technology application and information literacy comprehensively, and uses the probit model and CMP method to analyze whether informatization causes the substitution of agricultural machinery inputs for labor inputs and its heterogeneity. The results show that informatization has a significant negative impact on farmers' choice of labor-saving technology, and the result is robust at the regional level, but the negative impact of informatization on farmers' choice of labor-saving technology in the eastern region is smaller than that in the western region. The level of information literacy has the largest negative impact on farmers' choice of labor-saving technology, followed by the level of access to information technology, and the level of application of information technology has the smallest impact. The study concludes that informatization has not led to the significant substitution of labor by machinery in apple production. Thus, the results are important for enriching the theory of induced change in agricultural technology in the context of informatization.

Suggested Citation

  • Zhang, Congying & Xiang, Jingru & Chang, Qian, 2023. "Does Informatization Cause the Relative Substitution Bias of Agricultural Machinery Inputs for Labor Inputs? Evidence from Apple Farmers in China," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(3), September.
    • Handle: RePEc:ags:reowae:338490
    DOI: 10.22004/ag.econ.338490
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/338490/files/RWAE-0403-900.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.338490?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pierre Dubois & Tomislav Vukina, 2004. "Grower Risk Aversion and the Cost of Moral Hazard in Livestock Production Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 835-841.
    2. Shenggen Fan, 1991. "Effects of Technological Change and Institutional Reform on Production Growth in Chinese Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(2), pages 266-275.
    3. Xiaoqian Zhang & Feng Yang, 2019. "Rural informatization policy evolution in China: a bibliometric study," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(1), pages 129-153, July.
    4. Gershom Endelani Mwalupaso & Shangao Wang & Sanzidur Rahman & Essiagnon John-Philippe Alavo & Xu Tian, 2019. "Agricultural Informatization and Technical Efficiency in Maize Production in Zambia," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    5. Muto, Megumi & Yamano, Takashi, 2009. "The Impact of Mobile Phone Coverage Expansion on Market Participation: Panel Data Evidence from Uganda," World Development, Elsevier, vol. 37(12), pages 1887-1896, December.
    6. Smithson, Charles W., 1979. "Relative factor usage in canadian mining: Neoclassical substitution or biased technical change?," Resources and Energy, Elsevier, vol. 2(4), pages 373-389, December.
    7. R. Karina Gallardo & Johannes Sauer, 2018. "Adoption of Labor-Saving Technologies in Agriculture," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 185-206, October.
    8. Xiangfei Xin & Liu Xiaoyun, 2008. "Regional disparity of factor endowment and agricultural labor productivity in China," Psychometrika, Springer;The Psychometric Society, vol. 3(3), pages 380-409, September.
    9. Qinghua Liu & C. Richard Shumway, 2006. "Geographic aggregation and induced innovation in American agriculture," Applied Economics, Taylor & Francis Journals, vol. 38(6), pages 671-682.
    10. Jenny C. Aker & Ishita Ghosh & Jenna Burrell, 2016. "The promise (and pitfalls) of ICT for agriculture initiatives," Agricultural Economics, International Association of Agricultural Economists, vol. 47(S1), pages 35-48, November.
    11. Laura Hasler & Ian Ruthven & Steven Buchanan, 2014. "Using internet groups in situations of information poverty: Topics and information needs," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 65(1), pages 25-36, January.
    12. Giacomo Zanello, 2012. "Mobile Phones and Radios: Effects on Transactions Costs and Market Participation for Households in Northern Ghana," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(3), pages 694-714, September.
    13. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    14. Shoumin Yue & Ying Xue & Jie Lyu & Kangkang Wang, 2023. "The Effect of Information Acquisition Ability on Farmers’ Agricultural Productive Service Behavior: An Empirical Analysis of Corn Farmers in Northeast China," Agriculture, MDPI, vol. 13(3), pages 1-26, February.
    15. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    16. Martha, Geraldo B. & Alves, Eliseu & Contini, Elisio, 2012. "Land-saving approaches and beef production growth in Brazil," Agricultural Systems, Elsevier, vol. 110(C), pages 173-177.
    17. Olmstead, Alan L & Rhode, Paul, 1993. "Induced Innovation in American Agriculture: A Reconsideration," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 100-118, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei Chen & Quanzhong Wang & Hong Zhou, 2022. "Digital Rural Construction and Farmers’ Income Growth: Theoretical Mechanism and Micro Experience Based on Data from China," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    2. Min, Shi & Liu, Min & Huang, Jikun, 2020. "Does the application of ICTs facilitate rural economic transformation in China? Empirical evidence from the use of smartphones among farmers," Journal of Asian Economics, Elsevier, vol. 70(C).
    3. Pierre Marion & Etienne Lwamba & Andrea Floridi & Suvarna Pande & Megha Bhattacharyya & Sarah Young & Paul Fenton Villar & Shannon Shisler, 2024. "The effects of agricultural output market access interventions on agricultural, socio‐economic, food security, and nutrition outcomes in low‐ and middle‐income countries: A systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 20(2), June.
    4. Gershom Endelani Mwalupaso & Xu Tian & Xianhui Geng, 2020. "Rethinking Food Production: Nexus of Mobile Phones and Production Cost Minimization," IJERPH, MDPI, vol. 17(7), pages 1-12, April.
    5. Yucan Liu & C. Richard Shumway, 2009. "Induced Innovation in U.S. Agriculture: Time-series, Direct Econometric, and Nonparametric Tests," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 224-236.
    6. Baylis, Kathy & Mallory, Mindy & Songsermsawas, Tisorn, 2015. "Effects of credit and market access on farm gate prices in India," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205434, Agricultural and Applied Economics Association.
    7. Abate, Gashaw T. & Abay, Kibrom A. & Chamberlin, Jordan & Kassim, Yumna & Spielman, David J. & Paul Jr Tabe-Ojong, Martin, 2023. "Digital tools and agricultural market transformation in Africa: Why are they not at scale yet, and what will it take to get there?," Food Policy, Elsevier, vol. 116(C).
    8. Fuhong Zhang & Apurbo Sarkar & Hongyu Wang, 2021. "Does Internet and Information Technology Help Farmers to Maximize Profit: A Cross-Sectional Study of Apple Farmers in Shandong, China," Land, MDPI, vol. 10(4), pages 1-18, April.
    9. Rungsuriyawiboon, Supawat & Xiaobing, Wang, 2007. "Recent Evidence On Agricultural Efficiency And Productivity In China: A Metafrontier Approach," IAMO Discussion Papers 90863, Institute of Agricultural Development in Transition Economies (IAMO).
    10. Wouter Zant, 2012. "How does Market Access affect Smallholder Behavior? The Case of Tobacco Marketing in Malawi," Tinbergen Institute Discussion Papers 12-088/V, Tinbergen Institute, revised 25 Aug 2014.
    11. Salas Garcia, Vania B. & Fan, Qin, 2015. "Information Access and Smallholder Farmers’ Selling Decisions in Peru," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205380, Agricultural and Applied Economics Association.
    12. Shumway, C. Richard & Liu, Yucan, 2006. "Induced Innovation in the Agricultural Sector: Evidence From a State Panel," 2006 Annual meeting, July 23-26, Long Beach, CA 21089, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Parlasca, Martin C. & Mußhoff, Oliver & Qaim, Matin, 2018. "How mobile phones can improve nutrition among pastoral communities: Panel data evidence from Northern Kenya," GlobalFood Discussion Papers 274651, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    14. Awal Abdul‐Rahaman & Awudu Abdulai, 2020. "Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 259-280, April.
    15. Gong, Binlei, 2018. "Agricultural reforms and production in China: Changes in provincial production function and productivity in 1978–2015," Journal of Development Economics, Elsevier, vol. 132(C), pages 18-31.
    16. Mundlak, Yair, 2001. "Production and supply," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 1, pages 3-85, Elsevier.
    17. Kyeong Ho Lee & Marc F. Bellemare, 2013. "Look Who's Talking: The Impacts of the Intrahousehold Allocation of Mobile Phones on Agricultural Prices," Journal of Development Studies, Taylor & Francis Journals, vol. 49(5), pages 624-640, May.
    18. Adjognon, Guigonan Serge & Liverpool-Tasie, Saweda & Dillon, Andrew & Bloem, Jeffrey, 2021. "Transaction Costs, Input Subsidies, and Climate-Smart Agricultural Technology Adoption: Experimental Evidence from Rice Farmers in Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315157, International Association of Agricultural Economists.
    19. Nawab Khan & Ram L. Ray & Hazem S. Kassem & Farhat Ullah Khan & Muhammad Ihtisham & Shemei Zhang, 2022. "Does the Adoption of Mobile Internet Technology Promote Wheat Productivity? Evidence from Rural Farmers," Sustainability, MDPI, vol. 14(13), pages 1-15, June.
    20. repec:ags:ijag24:346854 is not listed on IDEAS
    21. Giacomo Zanello & Chittur S. Srinivasan & Bhavani Shankar, 2014. "Transaction Costs, Information Technologies, and the Choice of Marketplace among Farmers in Northern Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1226-1239, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:reowae:338490. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.nassg.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.